Closings of new homes in the Cedar Rapids, IA market slid year-over-year in May, but there were suggestions the market may be leveling out with a percentage fall less steep as in April 2016. There was a 24.4% fall in new home closings from a year earlier. This was after the housing market saw a 48.6% fall year-over-year in April.
A total of 415 new homes were sold during the 12 months that ended in May, down from 425 for the year that ended in April.
Out of all housing closings, new home closings accounted for 6.2%. This is a drop 7.3% of closings a year earlier. Closings of new and existing homes sank year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average value for new homes sold in May 2016 was $267,984, a move from $265,715 a year earlier. This followed a 15.2% lift in April year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. The average mortgage size slid to $229,180 in May, marking a 7.7% fall compared with last year. Average mortgage size gained 20.2% in April 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes increased from 85.4% in May 2015 to 93.5% of closings in May 2016. Conversely, the share of new home closings belonging to attached units slid to 6.5% of closings from 14.6% of closings.
For all new homes sold, the average unit size declined 6.2% year-over-year to 1,590 square feet in May 2016. In April, the average size of new homes sold went from 1,462 square feet a year earlier to 1,761 square feet.
Foreclosures and real estate owned (REO) closings staying steady in May from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 11.4% of existing home closings, about the same as a year earlier The percentage of existing home closings involving foreclosures rose to 7.8% in May from 5.3% a year earlier while REO closings as a percentage of existing home closings slid to 3.6% from 6.1% a year earlier.