New home closings slid year-over-year in July in the Des Moines, IA market, moving downward after little movement in June from the year earlier . New home closings saw a 17.6% drop from a year earlier to 112. Closings remained the same in June from the year earlier.
A total of 1,298 new homes were sold during the 12 months that ended in July, down from 1,322 for the year that ended in June.
Out of all housing closings, new home closings accounted for 7.5%. This is down from the a year earlier when new home closings represented 10.1% of total closings. Following a year-over-year increase in June, closings of new and existing homes also gained year-over-year in July.
Pricing and Mortgage Trends
In July, there was a 2.7% boost year-over-year in the average price of newly sold homes, reaching $306,452 per unit. This gain is an improvement over the 2.1% surge in June year-over-year.
The average mortgage size on newly sold homes increased year-over-year along with the average price of new homes. In July 2015, average mortgage size rose 7.3% from a year earlier to $261,239. In June 2015, average mortgage size on newly sold homes saw a 2.9% rise year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes climbed from 85.3% in July 2014 to 99.1% of closings in July 2015. At the same time, the share of new home closings belonging to attached units sank to 0.9% of closings from 14.7% of closings.
The average unit size of newly sold homes fell 9.2% year-over-year to 1,661 square feet in July 2015. For newly sold homes, an average size drop contrasting with an average price gain was also seen in June 2015 when the average size of newly sold homes dropped 3.6% to 1,690 square feet. The average size of newly sold homes moved from 1,754 square feet in June 2014 to 1,690 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 15.3% of existing home closings, below 17.2% a year earlier. The percentage of existing home closings involving foreclosures went from 7.3% in July 2014 to 6.8% in July 2015 and REO closings as a percentage of existing home closings slid to 8.4% from 9.9% a year earlier.