In July, there was a decline year-over-year in new home closings in the Lincoln, NE market, a drop following an increase in June 2016. New home closings saw a 43.9% fall from a year earlier to 37. In comparison, new home closings in the same month last year saw a 16.4% rise year-over-year in June.
A total of 583 new homes were sold during the 12 months that ended in July, down from 612 for the year that ended in June.
New home closings accounted for 6.1% of overall housing closings. This is down from the a year earlier when new home closings accounted for 10.2% of total closings. Following a year-over-year decline in June, closings of new and existing homes also slid year-over-year in July.
Pricing and Mortgage Trends
In July, the average price of newly sold homes climbed year-over-year to $276,281 per unit, a 6.7% gain. This rise compares to a 5.3% drop in June from a year earlier.
The average mortgage size on new homes moved north year-over-year along with new home prices. In July 2016, there was a 2.1% gain in the average mortgage size, reaching $224,362. Average mortgage size jumped 5.4% in June 2016 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 gained from 66.7% of new closings in July 2015 to 89.2% of closings in July 2016. Conversely, the share of new home closings belonging to attached units slid to 10.8% of closings from 33.3% of closings.
The average unit size of newly sold homes sank 14.5% year-over-year to 1,442 square feet in July 2016. In June, the average size of new homes sold went from 1,629 square feet a year earlier to 1,836 square feet.
Foreclosures and real estate owned (REO) closings increased in July from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 7.7% of existing home closings, higher than 7.4% a year earlier. The percentage of existing home closings involving foreclosures went from 2.9% in July 2015 to 3.2% in July 2016 and REO closings as a percentage of existing home closings stayed level at 4.6%.