There was a rise in new home closings in the Mobile, AL market in December year-over-year, rising after a fall in November 2015. New home closings saw a jump of 24.0% from the year earlier to 31. In comparison, new home closings in the same month last year saw a 5.0% drop year-over-year in November.
A total of 349 new homes were sold during the 12 months that ended in December, up from 343 for the year that ended in November.
As a percentage of overall housing closings, new home closings made up 5.5%. This is an increase on a percentage basis, as new home closings were 4.0% of total closings a year ago. Following a year-over-year decline in November, closings of new and existing homes also sank year-over-year in December.
Pricing and Mortgage Trends
For newly sold homes, the average price gained 17.8% year-over-year in December to $227,576 per unit. This surge is better than the 5.1% lift in November year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In December 2015, the average mortgage size was $204,753, up 8.6% from a year earlier. In November 2015, average mortgage size on newly sold homes saw a 26.9% boost year-over-year from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in December 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
The average unit size of newly sold homes slid 13.8% year-over-year to 1,573 square feet in December 2015. The average size of newly sold homes moved from 1,935 square feet in November 2014 to 2,435 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to increase in December from a year earlier and stayed a drag on the market. Together, foreclosures plus REO closings represented 42.2% of existing home closings, up from 39.8% a year earlier. The percentage of existing home closings involving foreclosures rose to 25.1% in December from 21.6% a year earlier while REO closings as a percentage of existing home closings slid to 17.1% from 18.1% a year earlier.