Closings of new homes in the Des Moines, IA market sank year-over-year in October, shifting downward off a bump in September 2015. New home closings saw a 2.1% decline from a year earlier to 142. In comparison, new home closings in the same month last year saw a 17.0% jump year-over-year in September.
A total of 1,551 new homes were sold during the 12 months that ended in October, down from 1,554 for the year that ended in September.
Out of all housing closings, new home closings accounted for 11.8%. New home closings were 12.3% of overall closings last year. For new and existing homes, closings grew year-over-year in October after also increasing in September year-over-year.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year in October to $295,651 per unit, a rise of 6.7%. This boost is an improvement over the 3.5% surge in September year-over-year.
For newly sold homes, the average mortgage size saw a gain year-over-year along with new home prices. It jumped 8.0% in October from a year earlier to $254,022. In September 2015, average mortgage size grew 7.3% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes increased from 84.8% in October 2014 to 93.0% of closings in October 2015. Conversely, the share of new home closings belonging to attached units declined to 7.0% of closings from 15.2% of closings.
The average unit size of newly sold homes went from 1,730 square feet in October 2014 to 1,739 square feet in October 2015. The average size of newly sold homes moved from 1,731 square feet in September 2014 to 1,808 square feet in September 2015. In September 2015, the average size of newly sold homes climbed 4.4% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in October, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 15.2% of existing home closings, down from 21.9% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.3% in October from 11.0% a year earlier and REO closings moved from 10.9% of existing home closings in October 2014 to 9.9% in October 2015.