Closings of new homes in the St. Louis, MO market sank year-over-year in July, and the percentage decline worsened from June 2016, indicating the market may be weakening. New home closings saw a fall of 81.5% from the year earlier to 32. This followed a 74.3% decline year-over-year in June.
A total of 859 new homes were sold during the 12 months that ended in July, down from 1,000 for the year that ended in June.
Out of all housing closings, new home closings represented 0.6%. This is down from the 2.9% of closings a year earlier. Following a year-over-year decline in June, closings of new and existing homes also fell year-over-year in July.
Pricing and Mortgage Trends
In July, the average per-unit price of new homes sank by 29.7% year-over-year to $231,172. This fall compares to a 14.9% gain in June year-over-year.
The average mortgage size on newly sold homes dropped year-over-year in contrast to the average price of new homes. It fell 25.0% in July from a year earlier to $196,230. In June 2016, average mortgage size climbed 5.8% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings rose from 91.3% of new closings in July 2015 to 93.8% of closings in July 2016. Meanwhile, attached units as a percentage of all new home closings declined to 6.2% of closings from 8.7% of closings.
There was a 14.0% drop year-over-year in the average unit size of newly sold homes to 1,910 square feet in July 2016. In June, the average size of new homes sold went from 2,256 square feet a year earlier to 1,846 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 17.1% of existing closings, lower than 18.8% a year earlier. The percentage of existing home closings involving foreclosures went from 9.0% in July 2015 to 8.1% in July 2016 and REO closings moved from 9.8% of existing home closings in July 2015 to 9.0% in July 2016.