Closings of new homes in the Montgomery, AL market sank year-over-year in July, but the decline was less than the year-over-year decline in June. New home closings moved from 23 a year earlier to 6 after the figure moved from 28 in June 2014 to 2 in June 2015.
A total of 113 new homes were sold during the 12 months that ended in July, down from 130 for the year that ended in June.
On a percentage basis, new home closings as a part of total closings decreased to 2.6% from 6.3% a year earlier. For new and existing homes, closings sank in July after also declining in June year-over-year.
Pricing and Mortgage Trends
The average new home value went from $262,770 last year to $310,313. This followed a move from $265,893 per unit in June 2014 to $268,002 in June 2015.
The average mortgage size on new homes was $276,980, up from $217,476. Average mortgage size on new homes went from $237,044 in June 2014 to $269,542 in June 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in July 2015.
The average unit size of newly sold homes rose from 2,213 square feet a year earlier to 3,201 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in July from a year earlier and stayed a drag on the market. Foreclosures and REO closings, taken together, accounted for 41.6% of existing home closings, up from 39.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 15.9% in July from 20.8% a year earlier while REO closings as a percentage of existing home closings gained to 25.7% from 18.2%.