In the Wichita, KS market in June, closings of new homes sank year-over-year, but the percentage drop was an improvement from May 2015, suggesting the market may be stabilizing. New home closings saw a fall of 2.8% from the year earlier to 70. This followed a 7.3% fall year-over-year in May.
A total of 590 new homes were sold during the 12 months that ended in June, down from 592 for the year that ended in May.
Of the total number of closings, new home closings made up 5.4%. As a part of the whole, new home closings were 5.8% a year earlier. Following a decline in May year-over-year, closings of new and existing homes rose year-over-year in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes slid year-over-year to $269,713 per unit, marking a 11.7% decline from the year-earlier figure. This decline is larger than the 3.6% fall in May from a year earlier.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. Average mortgage size dropped by 13.1% from a year earlier, settling at $227,561 in June. In May 2015, average mortgage size on newly sold homes saw a 5.2% fall 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 June 2015. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes dropped 22.4% year-over-year to 2,067 square feet in June 2015. In May, the average size of new homes sold went from 2,518 square feet a year earlier to 2,637 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 12.9% of existing home closings, down from 15.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.0% in June from 6.3% a year earlier and REO closings moved from 8.8% of existing home closings in June 2014 to 8.9% in June 2015.