Closings of new homes fell year-over-year in August in the Cedar Rapids, IA market, sliding down after a gain in July 2015. Closings dropped 7.5% from a year earlier to 37. In comparison, new home closings in the same month last year saw a 10.5% rise year-over-year in July.
A total of 367 new homes were sold during the 12 months that ended in August, down from 370 for the year that ended in July.
As a percentage of overall housing closings, new home closings represented 7.3%. This marks a rise from 6.0% of total closings a year earlier. For new and existing homes, closings sank in August after also declining in July year-over-year.
Pricing and Mortgage Trends
In August, the average price of newly sold homes jumped year-over-year to $267,730 per unit, a 22.6% surge. This gain is an improvement over the 3.8% boost in July year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In August 2015, the average mortgage size was $215,907, up 9.5% from a year earlier. In July 2015, average mortgage size on newly sold homes saw a 3.6% fall 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 rose from 72.5% in August 2014 to 94.6% of closings in August 2015. At the same time, the share of new home closings belonging to attached units dropped to 5.4% of closings from 27.5% of closings.
There was a 32.3% hike year-over-year in the average unit size of newly sold homes to 1,851 square feet in August 2015. In July, the average size of new homes sold went from 1,540 square feet a year earlier to 1,286 square feet.
Foreclosures and real estate owned (REO) closings increased in August from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 14.3% of existing home closings, up from 10.5% a year earlier. The percentage of existing home closings involving foreclosures went from 6.5% in August 2014 to 7.4% in August 2015 and REO closings as a percentage of existing home closings jumped to 6.8% from 4.0%.