In February, closings of new homes in the Cedar Rapids, IA market jumped year-over-year, rallying back from a decline in January 2016. There was a 6.2% climb in new home closings from a year earlier. This was after the housing market saw a 15.8% decline year-over-year in January.
A total of 446 new homes were sold during the 12 months that ended in February, up from 445 for the year that ended in January.
As a percentage of overall housing closings, new home closings made up 6.1%. This marks a rise from 5.1% of total closings a year earlier. For new and existing homes, closings slid in February after also declining in January year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes grew year-over-year to $266,771 in February, up 6.2% from last year. This bump is smaller than the 32.4% gain in January year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. Average mortgage size dropped by 16.0% from a year earlier, settling at $192,646 in February. In January 2016, average mortgage size on newly sold homes saw a 28.3% rise year-over-year from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 87.5% of new home closings to 88.2% of closings while attached units have gone from 12.5% of closings to 11.8% of closings.
There was a 2.1% lift year-over-year in the average unit size of newly sold homes to 1,614 square feet in February 2016. The average size of newly sold homes moved from 1,599 square feet in January 2015 to 1,504 square feet in January 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in February, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 16.2% of existing home closings, below 26.2% a year earlier. The percentage of existing home closings involving foreclosures sank to 7.7% in February from 9.4% a year earlier while REO closings as a percentage of existing home closings declined to 8.5% from 16.8% a year earlier.