In November, the Springfield, MO market saw a drop year-over-year in new home closings, and the percentage fall, which was steeper than October 2015, gave suggestions that the market may be worsening. New home closings saw a decline of 23.8% from the year earlier to 16. In comparison, new home closings in the same month last year saw a 9.7% drop year-over-year in October.
A total of 361 new homes were sold during the 12 months that ended in November, down from 366 for the year that ended in October.
Out of all housing closings, new home closings accounted for 2.5%. This is down from the 3.7% of closings a year earlier. Closings of new and existing homes gained year-over-year in November after also rising in October year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $253,568 per unit in November, up 13.0%from a year earlier. This bump compares to a 16.4% drop in October from a year earlier.
For newly sold homes, the average mortgage size saw a gain year-over-year along with new home prices. Average mortgage size increased 9.2% to $202,849 in November from a year earlier. Average mortgage size slid 18.3% 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 made up all of new home closings while attached unit closings have accounted for no part of closings.
For all new homes sold, the average unit size grew 3.9% year-over-year to 2,208 square feet in November 2015. The surge was not as steep as the bump in average price, making the movement similar to October 2015 when the average size increased 4.2% to 2,009 square feet from a year earlier. In October, the average size of new homes sold went from 2,098 square feet a year earlier to 2,009 square feet.
Foreclosures and real estate owned (REO) closings increased in November from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 16.5% of existing home closings, up from 15.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 7.1% in November from 9.0% a year earlier while REO closings as a percentage of existing home closings jumped to 9.4% from 6.9%.