In March, the Louisville, KY market saw a fall year-over-year in new home closings, and with a percentage fall steeper than February 2016, there were signals the market may be worsening. New home closings saw a 74.2% decline from a year earlier to 16. This was after the housing market saw a 51.1% decline 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.
New home closings made up 1.2% of overall housing closings. This is a decline 5.7% of closings a year earlier. For new and existing homes, closings increased year-over-year in March after also increasing in February year-over-year.
Pricing and Mortgage Trends
In March, there was a 4.8% fall year-over-year in the average per-unit price of newly sold homes, settling at $330,837. This fall compares to a 17.5% gain in February year-over-year.
The average mortgage size on newly sold homes fell year-over-year in contrast to the average price of new homes. It sank 8.1% in March from a year earlier, reaching $259,427. In February 2016, average mortgage size on newly sold homes saw a 16.2% lift year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units rose from 6.5% of closings in March 2015 to 18.8% of closings in March 2016. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 81.2% of closings from 93.5% of closings.
Foreclosures and real estate owned (REO) closings increased in March from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 22.5% of existing home closings, up from 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 declined to 9.3% from 13.0% a year earlier.