In the Huntsville, AL market, closings of new homes dropped year-over-year in May, but compared with April 2016, the percentage decline was less steep, hinting the market may be strengthening. New home closings saw a 30.6% decline from a year earlier to 84. This came on the heels of a 32.2% decline year-over-year in April.
A total of 1,190 new homes were sold during the 12 months that ended in May, down from 1,227 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 9.9%. This is down from the a year earlier when new home closings made up 15.6% of total closings. Following a year-over-year increase in April, closings of new and existing homes also increased year-over-year in May.
Pricing and Mortgage Trends
Average value of new homes sold in May was $251,547 per unit, down 3.6% from a year earlier. This decline compares to a 12.1% rise in April year-over-year.
The average mortgage size on newly sold homes dropped year-over-year in contrast to the average price of new homes. It fell to $232,595 in May, a 1.2% drop. Average mortgage size gained 6.4% in April 2016 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 May 2016. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
There was a 6.1% drop year-over-year in the average unit size of newly sold homes to 2,437 square feet in May 2016. The average size of newly sold homes moved from 2,590 square feet in April 2015 to 2,521 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 20.3% of existing closings, lower than 28.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 10.3% in May from 14.1% a year earlier while REO closings as a percentage of existing home closings declined to 9.9% from 14.4% a year earlier.