Closings of new homes slid year-over-year in May in the Lexington, KY market, and the decline was by a larger percentage than the April 2016. New home closings moved from 21 a year earlier to 6 after the figure moved from 17 in April 2015 to 8 in April 2016.
A total of 208 new homes were sold during the 12 months that ended in May, down from 223 for the year that ended in April.
New home closings were 6 out of the 641 total closings, down on a percentage basis from 21 of 558 a year earlier. Following a year-over-year increase in April, closings of new and existing homes also jumped year-over-year in May.
Pricing and Mortgage Trends
The average value of newly sold homes in May 2016 was $237,470, down from last year's $279,045. This was on the heels of a 10.5% fall in April from a year earlier.
From the year-ago figure of $211,687, the average mortgage size on new homes moved up to $214,721. Average mortgage size on new homes went from $236,065 in April 2015 to $226,731 in April 2016.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
The average unit size of newly sold homes fell from 2,443 square feet a year earlier to 1,949 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 7.6% of existing home closings, below 9.3% a year earlier. The percentage of existing home closings involving foreclosures went from 3.2% in May 2015 to 3.5% in May 2016 and REO closings as a percentage of existing home closings fell to 4.1% from 6.1% a year earlier.