In April, there was a decline year-over-year in new home closings in the Birmingham, AL market, but the decline in percentage terms was not as steep as March 2016, signaling market improvement. Closings slid 70.3% from a year earlier to 19. This followed a 82.6% decline year-over-year in March.
A total of 457 new homes were sold during the 12 months that ended in April, down from 502 for the year that ended in March.
Out of all housing closings, new home closings accounted for 1.1%. This is down from the 3.7% of closings a year earlier. After a fall in March year-over-year, new and existing home closings stayed level in April.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 18.5% fall year-over-year in April to $273,294 per unit. This drop is larger than the 9.1% fall in March from a year earlier.
In April 2016, average mortgage size on new homes went from $264,806 in April 2015 to $266,571 in April 2016. Average mortgage size went from $236,451 in March 2015 to $235,496 in March 2016.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. The share of new home closings belonging to attached units jumped from 3.1% of closings in April 2015 to 5.3% of closings in April 2016. Conversely, the share belonging to single-family homes declined to 94.7% of closings from 96.9% of closings.
There was a 6.5% decline year-over-year in the average unit size of newly sold homes to 2,538 square feet in April 2016. The average size of newly sold homes moved from 2,076 square feet in March 2015 to 2,112 square feet in March 2016.
Foreclosures and real estate owned (REO) closings decreased in April from a year earlier, but remained a drag on the market. Foreclosures and REO closings, taken together, accounted for 25.9% of existing closings, lower than 28.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 11.5% in April from 13.5% a year earlier and REO closings moved from 15.3% of existing home closings in April 2015 to 14.4% in April 2016.