The Mobile, AL market saw a drop in new home closings year-over-year in February, swinging downward off a year-over-year lift in January 2016. There was a 4.3% decline in new home closings from a year earlier. This followed a 35.0% rise year-over-year in January.
A total of 356 new homes were sold during the 12 months that ended in February, down from 357 for the year that ended in January.
Out of all housing closings, new home closings made up 4.4%. They accounted for 3.7% of closings a year earlier. Following a year-over-year decline in January, closings of new and existing homes also slid year-over-year in February.
Pricing and Mortgage Trends
The average value for new homes sold in February 2016 was $209,849, a move from $208,595 a year earlier. This was on the heels of a move from $196,014 per unit in January 2015 to $194,818 in January 2016.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. The average mortgage size fell to $183,274 in February, marking a 8.1% decline compared with last year. Average mortgage size gained 9.3% in January 2016 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 February 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
There was a 11.7% decline year-over-year in the average unit size of newly sold homes to 1,905 square feet in February 2016. The average size of newly sold homes moved from 2,092 square feet in January 2015 to 1,618 square feet in January 2016.
Foreclosures and real estate owned (REO) closings declined in February from a year earlier, but remained a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 42.5% of closings, below 45.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 22.4% in February from 19.1% a year earlier while REO closings as a percentage of existing home closings fell to 20.1% from 26.9% a year earlier.