In the Louisville, KY market in March, closings of new homes slid year-over-year, and the percentage drop, which was steeper than February 2016, gave suggestions of weakening market conditions. There was a 74.2% decline in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 51.1% drop year-over-year in February.
A total of 441 new homes were sold during the 12 months that ended in March, down from 487 for the year that ended in February.
Out of all housing closings, new home closings accounted for 1.2%. This is a fall 5.7% of closings a year earlier. Following a year-over-year increase in February, closings of new and existing homes also rose year-over-year in March.
Pricing and Mortgage Trends
Average price of newly sold homes had a 4.8% decline year-over-year to $330,837 per unit in March. This fall compares to a 17.5% lift in February year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. Average mortgage size sank by 8.1% from a year earlier, settling at $259,427 in March. In February 2016, average mortgage size on newly sold homes saw a 16.2% rise year-over-year from a year earlier.
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. Attached unit closings gained from 6.5% of all closings in March 2015 to 18.8% of closings in March 2016. At the same time, the share belonging to single-family homes declined to 81.2% of closings from 93.5% of closings.
Foreclosures and real estate owned (REO) closings rose in March from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 22.5% of existing home closings, above 20.1% a year earlier. The percentage of existing home closings involving foreclosures rose to 13.2% in March from 7.0% a year earlier while REO closings as a percentage of existing home closings slid to 9.3% from 13.0% a year earlier.