In the Kansas City, MO market in December, new home closings slid year-over-year, but the percentage decline was not as steep as November 2015, suggesting that the market may be stabilizing. There was a 24.9% drop in new home closings from a year earlier. This followed a 30.7% decline year-over-year in November.
A total of 2,382 new homes were sold during the 12 months that ended in December, down from 2,432 for the year that ended in November.
New home closings represented 4.2% of overall housing closings. This is a decline 5.3% of closings a year earlier. Closings of new and existing homes sank year-over-year in December after also falling in November year-over-year.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year in December to $375,189 per unit, a rise of 4.9%. This lift is higher than the 4.8% bump in November year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In December 2015, there was a 4.7% rise in the average mortgage size, reaching $314,177. In November 2015, average mortgage size on newly sold homes saw a 2.3% hike year-over-year from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 95.0% of new home closings to 94.7% of closings while attached units have gone from 5.0% of closings to 5.3% of closings.
There was a 14.4% fall year-over-year in the average unit size of newly sold homes to 2,218 square feet in December 2015. The average size of newly sold homes moved from 2,351 square feet in November 2014 to 2,338 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 20.0% of existing closings, lower than 24.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 7.9% in December from 11.6% a year earlier while REO closings as a percentage of existing home closings declined to 12.1% from 13.1% a year earlier.