In the Lexington, KY market, closings of new homes slid year-over-year in August, and the decline was by a larger percentage than the July 2015. New home closings moved from 26 a year earlier to 6 after the figure moved from 28 in July 2014 to 8 in July 2015.
A total of 94 new homes were sold during the 12 months that ended in August, down from 114 for the year that ended in July.
On a percentage basis, new home closings as a part of total closings decreased to 0.9% from 4.5% a year earlier. After staying stable in July from a year earlier, closings of new and existing homes increased in August.
Pricing and Mortgage Trends
The average per-unit price of new homes was $274,544, compared with $304,798 last year. This was on the heels of a 23.0% decline in July from a year earlier.
Average mortgage size on new homes fell from $245,674 to $181,713. Average mortgage size on new homes went from $240,483 in July 2014 to $191,534 in July 2015.
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 1,767 square feet a year earlier to 1,636 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 9.1% of existing home closings, below 13.0% a year earlier. The percentage of existing home closings involving foreclosures slid to 3.5% in August from 5.8% a year earlier while REO closings as a percentage of existing home closings sank to 5.6% from 7.2% a year earlier.