Closings of new homes slid year-over-year in March in the Springfield, MO market, but the decline was less than the year-over-year decline in February. New home closings moved from 33 a year earlier to 19 after the figure moved from 27 in February 2015 to 14 in February 2016.
A total of 317 new homes were sold during the 12 months that ended in March, down from 331 for the year that ended in February.
New home closings made up 2.5% of overall housing closings. This is down from the a year earlier when new home closings represented 4.2% of total closings. After rising year-over-year in February, closings of new and existing homes fell year-over-year in March.
Pricing and Mortgage Trends
The average price of new homes declined by 9.7% year-over-year to $210,032 per unit in March. This fall is larger than the 9.2% drop in February from a year earlier.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In March 2016, average mortgage size declined 6.0% from a year earlier to $182,147. Average mortgage size on new homes went from $181,800 in February 2015 to $171,879 in February 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in March 2016. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
There was a 13.7% decline year-over-year in the average unit size of newly sold homes to 1,655 square feet in March 2016. A drop was also seen in February 2016 when the average size of new homes sold dropped 15.9% to 1,743 square feet. In February, the average size of new homes sold went from 2,073 square feet a year earlier to 1,743 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in March, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 13.0% of closings, below 15.4% a year earlier. The percentage of existing home closings involving foreclosures sank to 7.3% in March from 8.6% a year earlier while REO closings as a percentage of existing home closings declined to 5.7% from 6.8% a year earlier.