In the Birmingham, AL market in June, new home closings declined year-over-year, but the percentage drop narrowed from that of May 2016, suggesting that the market may be leveling out. Closings sank 73.6% from a year earlier to 23. This followed a 73.8% drop year-over-year in May.
A total of 359 new homes were sold during the 12 months that ended in June, down from 423 for the year that ended in May.
New home closings made up 1.2% of overall housing closings. This is a decline 4.4% of closings a year earlier. Following a year-over-year increase in May, closings of new and existing homes also increased year-over-year in June.
Pricing and Mortgage Trends
Average price of newly sold homes had a 21.3% bump year-over-year to $324,409 per unit in June. This hike is better than the 2.2% gain in May year-over-year.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. In June 2016, the average mortgage size was $246,107, a 2.5% rise from a year earlier. In May 2016, average mortgage size on newly sold homes saw a 15.0% bump year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings jumped from 97.7% of new closings in June 2015 to all of closings in June 2016. Conversely, the share of new home closings belonging to attached units sank to no part of closings from 2.3% of closings.
The average unit size of newly sold homes gained 20.4% year-over-year to 2,923 square feet in June 2016. The average size of newly sold homes moved from 2,551 square feet in May 2015 to 2,403 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 24.7% of existing home closings, down from 24.8% a year earlier. The percentage of existing home closings involving foreclosures went from 12.3% in June 2015 to 12.7% in June 2016 and REO closings moved from 12.5% of existing home closings in June 2015 to 12.0% in June 2016.