In the Huntsville, AL market in September, new home closings fell year-over-year, drawing a downward slope off of a rise in August 2015. New home closings saw a 9.0% decline from a year earlier to 71. This came after a 29.0% rise year-over-year in August.
A total of 828 new homes were sold during the 12 months that ended in September, down from 835 for the year that ended in August.
As a percentage of overall housing closings, new home closings made up 10.0%. This is down from the 13.4% of closings a year earlier. For new and existing homes, closings grew year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
The average price of new homes dropped by 7.1% year-over-year to $227,881 per unit in September. This drop compares to a 2.3% rise in August year-over-year.
The average mortgage size on newly sold homes dropped year-over-year in contrast to the average price of new homes. Average mortgage size slid by 5.2% from a year earlier, settling at $209,957 in September. Average mortgage size rose 4.7% in August 2015 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in September 2015. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
For all new homes sold, the average unit size grew 78.2% year-over-year to 2,906 square feet in September 2015. The average size of newly sold homes moved from 1,875 square feet in August 2014 to 2,717 square feet in August 2015.
Foreclosures and real estate owned (REO) closings decreased in September from a year earlier, but remained a drag on the market. Combined, foreclosures plus REO closings accounted for 26.8% of existing home closings, below 29.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 9.7% in September from 17.3% a year earlier while REO closings as a percentage of existing home closings jumped to 17.1% from 11.9%.