New home closings in the Huntsville, AL market dropped year-over-year in July, and the percentage drop worsened from June 2015, indicating the market may be weakening. New home closings saw a fall of 20.5% from the year earlier to 66. This came after a 2.5% drop year-over-year in June.
A total of 797 new homes were sold during the 12 months that ended in July, down from 814 for the year that ended in June.
Out of all housing closings, new home closings accounted for 9.3%. This is down from the 12.4% of closings a year earlier. Closings of new and existing homes gained year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
In July, there was a 12.2% drop year-over-year in the average per-unit price of newly sold homes, settling at $229,980. This decline is a drop off from the 14.6% fall in June from a year earlier.
The average mortgage size on newly sold homes saw a decline year-over-year in contrast to new home prices. Average mortgage size sank by 7.4% from a year earlier, settling at $214,996 in July. In June 2015, average mortgage size on newly sold homes saw a 6.8% decline from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings increased from 98.8% of new closings in July 2014 to all of closings in July 2015. Conversely, the share of new home closings belonging to attached units slid to no part of closings from 1.2% of closings.
For all new homes sold, the average unit size rose 23.1% year-over-year to 3,794 square feet in July 2015. The average size of newly sold homes moved from 1,848 square feet in June 2014 to 1,580 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 20.7% of existing home closings, down from a quarter a year earlier. The percentage of existing home closings involving foreclosures dropped to 9.9% in July from 13.3% a year earlier and REO closings moved from 11.7% of existing home closings in July 2014 to 10.8% in July 2015.