New home closings in the Huntsville, AL market climbed year-over-year in August, shifting up after a fall in July 2015. There was a 29.0% climb in new home closings from a year earlier. This came on the heels of a 9.6% decline year-over-year in July.
A total of 830 new homes were sold during the 12 months that ended in August, up from 810 for the year that ended in July.
As a percentage of overall housing closings, new home closings represented 13.4%. This is a rise from 11.1% of closings a year earlier. Closings of new and existing homes grew year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $242,207 per unit in August, up 2.3%from a year earlier. This bump compares to a 11.9% drop in July from a year earlier.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. In August 2015, the average mortgage size was $223,309, up 4.7% from a year earlier. Average mortgage size slid 6.9% in July 2015 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in August 2015. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
There was a 44.9% hike year-over-year in the average unit size of newly sold homes to 2,717 square feet in August 2015. The average size of newly sold homes moved from 3,083 square feet in July 2014 to 3,794 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to rise in August from a year earlier and remained a drag on the market. Foreclosures and REO closings, taken together, represented 25.8% of existing home closings, higher than 22.5% a year earlier. The percentage of existing home closings involving foreclosures went from 11.1% in August 2014 to 10.6% in August 2015 and REO closings as a percentage of existing home closings grew to 15.2% from 11.4%.