In the St. Louis, MO market, closings of new homes jumped year-over-year in August, but the market seemed to show signs of stabilizing as the percentage jumped was less than in July 2015. New home closings saw a climb of 10.6% from the year earlier to 125. This came after a 44.8% jump year-over-year in July.
A total of 2,323 new homes were sold during the 12 months that ended in August, up from 2,311 for the year that ended in July.
Of the total number of closings, new home closings made up 2.1%. As a part of the whole, new home closings were 2.3% a year earlier. For new and existing homes, closings increased year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
In August, the average price of newly sold homes declined 27.0% year-over-year to $275,063 per unit. This decline is larger than the 7.7% fall in July from a year earlier.
Average mortgage size on new homes saw a drop year-over-year in contrast to prices of new homes. The average mortgage size sank to $240,980 in August, marking a 19.6% fall compared with last year. In July 2015, average mortgage size dropped 2.1% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units climbed from 2.7% of closings in August 2014 to 12.0% of closings in August 2015. At the same time, the share belonging to single-family homes slid to 88.0% of closings from 97.3% of closings.
For all new homes sold, the average unit size jumped 8.4% year-over-year to 2,396 square feet in August 2015. The average size of newly sold homes moved from 2,259 square feet in July 2014 to 2,261 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 18.2% of existing home closings, below 23.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 7.6% in August from 10.7% a year earlier while REO closings as a percentage of existing home closings fell to 10.5% from 13.1% a year earlier.