In January, there was a drop year-over-year in new home closings in the Fayetteville, AR market, but the decline was less than the year-over-year decline in December. New home closings moved from 91 a year earlier to 16 after the figure moved from 91 in December 2014 to 12 in December 2015.
A total of 645 new homes were sold during the 12 months that ended in January, down from 720 for the year that ended in December.
New home closings represented 3.0% of overall housing closings. This is a fall 13.6% of closings a year earlier. For new and existing homes, closings declined in January after also declining in December year-over-year.
Pricing and Mortgage Trends
In January, there was a 16.9% boost year-over-year in the average price of newly sold homes, reaching $294,311 per unit. This hike is smaller than the 22.9% gain in December year-over-year.
Average mortgage size on new homes gained year-over-year along with new home prices. It jumped to $242,600 in January, a 17.6% lift. Average mortgage size on new homes went from $203,173 in December 2014 to $247,027 in December 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in January 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
There was a 9.3% drop year-over-year in the average unit size of newly sold homes to 2,001 square feet in January 2016. In December, the average size of new homes sold went from 2,092 square feet a year earlier to 2,931 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 22.5% of existing closings, lower than 28.3% a year earlier. The percentage of existing home closings involving foreclosures slid to 9.6% in January from 11.4% a year earlier while REO closings as a percentage of existing home closings dropped to 12.9% from 16.9% a year earlier.