In the Louisville, KY market, new home closings fell year-over-year in February, but the percentage fall, which was less than that of January 2016, gave suggestions that the market may be leveling out. New home closings saw a decline of 51.1% from the year earlier to 22. This came on the heels of a 70.9% fall year-over-year in January.
A total of 487 new homes were sold during the 12 months that ended in February, down from 510 for the year that ended in January.
As a percentage of overall housing closings, new home closings made up 2.2%. This is down from the a year earlier when new home closings made up 5.0% of total closings. After staying stable in January from a year earlier, closings of new and existing homes climbed in February.
Pricing and Mortgage Trends
The average price of new homes was $401,668 per unit in February, up 17.5%from a year earlier. This bump is an improvement over the 7.1% rise in January year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In February 2016, the average mortgage size on newly sold homes saw a 16.2% rise from a year earlier. In January 2016, average mortgage size on newly sold homes saw a 15.7% rise year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units rose from 6.7% of closings in February 2015 to 9.1% of closings in February 2016. At the same time, the share belonging to single-family homes dropped to 90.9% of closings from 93.3% of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in February, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 22.8% of existing home closings, down from 27.6% a year earlier. The percentage of existing home closings involving foreclosures rose to 13.0% in February from 11.2% a year earlier while REO closings as a percentage of existing home closings slid to 9.8% from 16.4% a year earlier.