Closings of new homes in the Oklahoma City, OK market sank year-over-year in August, and the percentage drop was steeper than July 2015, giving suggestion the market may be worsening. Closings fell 20.1% from a year earlier to 230. This came on the heels of a 15.0% decline year-over-year in July.
A total of 3,470 new homes were sold during the 12 months that ended in August, down from 3,528 for the year that ended in July.
As a percentage of overall housing closings, new home closings accounted for 8.9%. This is a drop 12.1% of closings a year earlier. Following a year-over-year increase in July, closings of new and existing homes also rose year-over-year in August.
Pricing and Mortgage Trends
The average price of newly sold homes jumped year-over-year 6.5% in August to $264,511 per unit. This gain is smaller than the 6.9% lift in July year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In August 2015, the average mortgage size was $226,329, up 3.3% from a year earlier. In July 2015, average mortgage size rose 10.1% 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 97.9% of new closings in August 2014 to 99.1% of closings in August 2015. Meanwhile, attached units as a percentage of all new home closings fell to 0.9% of closings from 2.1% of closings.
The average unit size of newly sold homes went from 2,138 square feet in August 2014 to 2,147 square feet in August 2015. In July 2015, the average size of newly sold homes increased 9.0% from the year earlier. The average size of newly sold homes moved from 2,103 square feet in July 2014 to 2,293 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 16.9% of existing home closings, down from 18.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.3% in August from 9.4% a year earlier and REO closings moved from 8.9% of existing home closings in August 2014 to 8.6% in August 2015.