The Mobile, AL market saw an increase in closings of new homes in September year-over-year, picking up from a fall in August 2015. New home closings saw a 7.7% rise from a year earlier to 28. In comparison, new home closings in the same month last year saw a 3.8% fall year-over-year in August.
A total of 320 new homes were sold during the 12 months that ended in September, up from 318 for the year that ended in August.
As a percentage of overall housing closings, new home closings accounted for 4.7% of overall housing closings. New home closings were 4.4% of overall closings last year. Closings of new and existing homes increased year-over-year in September following a fall in August year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 9.8% fall year-over-year to $189,711 per unit in September. This drop compares to a 15.3% rise in August 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 dropped 6.5% in September from a year earlier, reaching $182,902. Average mortgage size climbed 18.0% in August 2015 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 September 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes fell 49.7% year-over-year to 1,165 square feet in September 2015. The average size of newly sold homes moved from 1,808 square feet in August 2014 to 1,368 square feet in August 2015.
Foreclosures and real estate owned (REO) closings fell in September from a year earlier, but remained a burden on the market. Together, foreclosures plus REO closings made up 34.2% of existing home closings, down from 41.5% a year earlier. The percentage of existing home closings involving foreclosures declined to 16.7% in September from 23.4% a year earlier and REO closings moved from 18.1% of existing home closings in September 2014 to 17.4% in September 2015.