New home closings slid year-over-year in November in the Mobile, AL market, but the percentage drop was less than that of October 2015, hinting that the market may be strengthening. New home closings saw a 5.0% drop from a year earlier to 19. This was after the housing market saw a 18.8% drop year-over-year in October.
A total of 349 new homes were sold during the 12 months that ended in November, down from 350 for the year that ended in October.
Out of all housing closings, new home closings accounted for 4.5%. They made up 4.3% of closings a year earlier. Following a year-over-year rise in October, closings of new and existing homes slid year-over-year in November.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $227,696 in November, up 5.1% from last year. This gain is smaller than the 9.1% boost in October year-over-year.
For newly sold homes, the average mortgage size saw a gain year-over-year along with new home prices. In November 2015, the average mortgage size was $215,353, up 26.9% from a year earlier. Average mortgage size grew 16.8% in October 2015 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in November 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
For all new homes sold, the average unit size jumped 25.8% year-over-year to 2,435 square feet in November 2015. An increase in both the average size and price of newly sold homes was also seen in October 2015 when the average size gained 39.9% to 2,502 square feet. The average size of newly sold homes moved from 1,788 square feet in October 2014 to 2,502 square feet in October 2015.
Foreclosures and real estate owned (REO) closings fell in November from a year earlier, but stayed a drag on the market. Combined, foreclosures plus REO closings accounted for 43.8% of existing home closings, below 44.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 20.9% in November from 25.1% a year earlier while REO closings as a percentage of existing home closings increased to 22.9% from 19.7%.