In July, the Huntsville, AL market saw a fall year-over-year in new home closings, and the percentage fall, which was steeper than June 2016, gave signals that the market may be worsening. New home closings saw a decline of 39.2% from the year earlier to 79. This came on the heels of a 12.6% fall year-over-year in June.
A total of 1,138 new homes were sold during the 12 months that ended in July, down from 1,189 for the year that ended in June.
Out of all housing closings, new home closings made up 9.1%. This is a fall 13.8% of closings a year earlier. Following a year-over-year rise in June, closings of new and existing homes dropped year-over-year in July.
Pricing and Mortgage Trends
In July, the average price of newly sold homes jumped year-over-year to $272,424 per unit, a 9.5% hike. This gain compares to a 6.8% decline in June from a year earlier.
There was a gain year-over-year in the average mortgage size on new homes along with new home prices. It gained to $230,310 in July, a 3.4% lift. In June 2016, average mortgage size fell 9.9% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings gained from 98.5% of new closings in July 2015 to all of closings in July 2016. At the same time, the share of new home closings belonging to attached units declined to no part of closings from 1.5% of closings.
The average unit size of newly sold homes went from 2,648 square feet in July 2015 to 2,664 square feet in July 2016. The average size of newly sold homes moved from 2,657 square feet in June 2015 to 2,505 square feet in June 2016. In June 2016, the average size of newly sold homes dropped 5.7% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 17.7% of closings, below 21.4% a year earlier. The percentage of existing home closings involving foreclosures went from 9.9% in July 2015 to 10.6% in July 2016 and REO closings as a percentage of existing home closings declined to 7.1% from 11.6% a year earlier.