The Mobile, AL market saw a rise in new home closings in April year-over-year, but there were signs of market leveling as the percentage surge was less than March 2016. Closings increased 3.6% from a year earlier to 29. This came on the heels of a 27.9% climb year-over-year in March.
A total of 373 new homes were sold during the 12 months that ended in April, up from 372 for the year that ended in March.
Of the total number of closings, new home closings made up 4.1%. A year ago, new home closings represented 4.3%. New and existing home closings increased in April after a remaining level in March from a year earlier.
Pricing and Mortgage Trends
Average value of new homes sold in April was $199,773 per unit, down 10.3% from a year earlier. This drop is a drop off from the 15.7% fall in March from a year earlier.
For newly sold homes, average mortgage size moved from $186,970 in April 2015 to $187,363 in April 2016. In March 2016, average mortgage size on newly sold homes saw a 5.0% decline 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 April 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes jumped 53.9% year-over-year to 3,013 square feet in April 2016. The average size of newly sold homes moved from 2,397 square feet in March 2015 to 1,781 square feet in March 2016.
Foreclosures and real estate owned (REO) closings decreased in April from a year earlier, but remained a burden on the market. Together, foreclosures plus REO closings accounted for 32.3% of existing home closings, down from 43.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 16.3% in April from 21.5% a year earlier while REO closings as a percentage of existing home closings sank to 15.9% from 22.2% a year earlier.