In the Lexington, KY market, new home closings sank year-over-year in February, and the decline was by a larger percentage than the January 2016. New home closings moved from 24 a year earlier to 6 after the figure moved from 16 in January 2015 to 8 in January 2016.
A total of 256 new homes were sold during the 12 months that ended in February, down from 274 for the year that ended in January.
New home closings represented 6 out of the 324 total closings, which is a smaller percentage than the 24 of 332 total closings a year earlier. Following a year-over-year increase in January, closings of new and existing homes declined year-over-year in February.
Pricing and Mortgage Trends
The average new home price was $269,026, down from $271,904 a year earlier. This was on the heels of a 11.7% drop in January from a year earlier.
There was a decline in average mortgage size on new homes, going from $222,527 last year to $200,354 in February 2016. Average mortgage size on new homes went from $285,279 in January 2015 to $217,808 in January 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 2,456 square feet a year earlier to 2,204 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in February, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 10.4% of existing home closings, below 14.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 3.1% in February from 8.4% a year earlier and REO closings moved from 6.5% of existing home closings in February 2015 to 7.2% in February 2016.