New home closings dropped year-over-year in June in the Iowa City, IA market, a move downward following a boost in May 2016. New home closings saw a decline of 11.8% from the year earlier to 45. This followed a 32.0% climb year-over-year in May.
A total of 270 new homes were sold during the 12 months that ended in June, down from 276 for the year that ended in May.
Out of all housing closings, new home closings made up 8.9%. A year ago, new home closings accounted for 9.3%. After rising year-over-year in May, closings of new and existing homes declined year-over-year in June.
Pricing and Mortgage Trends
The average value for new homes sold in June 2016 was $336,538, a move from $337,894 a year earlier. This followed a 12.0% bump in May year-over-year.
Average mortgage size on new homes increased year-over-year in contrast to new home prices. The average mortgage size saw a 4.7% hike year-over-year to $286,710 in June. In May 2016, average mortgage size climbed 1.6% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. The share of new home closings belonging to attached units rose from 9.8% of closings in June 2015 to 11.1% of closings in June 2016. Conversely, the share belonging to single-family homes fell to 88.9% of closings from 90.2% of closings.
For all new homes sold, the average unit size dropped 4.5% year-over-year to 1,649 square feet in June 2016. In May, the average size of new homes sold went from 1,667 square feet a year earlier to 1,685 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 2.8% of existing home closings, down from 5.2% a year earlier. The percentage of existing home closings involving foreclosures went from 2.2% in June 2015 to 1.3% in June 2016 and REO closings as a percentage of existing home closings declined to 1.5% from 3.0% a year earlier.