In October, the Wichita, KS market saw a fall year-over-year in new home closings, a drop following an increase in September 2015. New home closings saw a 15.9% fall from a year earlier to 37. In comparison, new home closings in the same month last year saw a 6.2% jump year-over-year in September.
A total of 590 new homes were sold during the 12 months that ended in October, down from 597 for the year that ended in September.
As a percentage of overall housing closings, new home closings represented 2.6%. This is down from the a year earlier when new home closings represented 4.2% of total closings. Following a year-over-year increase in September, closings of new and existing homes also increased year-over-year in October.
Pricing and Mortgage Trends
In October, there was a 10.1% gain year-over-year in the average price of newly sold homes, reaching $279,398 per unit. This lift compares to a 7.0% decline in September from a year earlier.
For newly sold homes, the average mortgage size jumped year-over-year along with new home prices. It jumped 17.3% in October from a year earlier to $253,190. Average mortgage size fell 5.7% in September 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units jumped from no part of closings in October 2014 to 2.7% of closings in October 2015. At the same time, the share belonging to single-family homes declined to 97.3% of closings from all of closings.
There was a 27.4% hike year-over-year in the average unit size of newly sold homes to 3,291 square feet in October 2015. In September, the average size of new homes sold went from 2,627 square feet a year earlier to 2,451 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in October from a year earlier and remained a burden on the market. Together, foreclosures plus REO closings accounted for 28.9% of existing home closings, up from 18.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 20.3% in October from 8.8% a year earlier and REO closings moved from 9.5% of existing home closings in October 2014 to 8.6% in October 2015.