In April, the Huntsville, AL market saw a drop year-over-year in new home closings, and the percentage fall was steeper than March 2016, suggesting the market may be worsening. Closings declined 32.2% from a year earlier to 80. This followed a 21.5% decline year-over-year in March.
A total of 1,227 new homes were sold during the 12 months that ended in April, down from 1,265 for the year that ended in March.
Out of all housing closings, new home closings made up 9.9%. This is a fall 15.0% of closings a year earlier. For new and existing homes, closings increased year-over-year in April after also increasing in March year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes climbed year-over-year 12.1% in April to $269,951 per unit. This lift follows a move from $267,658 per unit in March 2015 to $265,093 in March 2016.
The average mortgage size on newly sold homes saw a rise year-over-year along with new home prices. It gained to $235,686 in April, a 6.4% hike. In March 2016, average mortgage size remained level from a year earlier at $234,093.
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 accounted for all of new home closings while attached unit closings have made up no part of closings.
There was a 2.7% drop year-over-year in the average unit size of newly sold homes to 2,521 square feet in April 2016. In March, the average size of new homes sold went from 2,739 square feet a year earlier to 2,734 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 22.2% of closings, below 28.4% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.1% in April from 13.3% a year earlier while REO closings as a percentage of existing home closings dropped to 12.1% from 15.1% a year earlier.