Closings of new homes fell year-over-year in March in the Cedar Rapids, IA market, swinging downward off a year-over-year boost in February 2016. New home closings saw a fall of 11.1% from the year earlier to 32. In comparison, new home closings in the same month last year saw a 6.2% rise year-over-year in February.
A total of 442 new homes were sold during the 12 months that ended in March, down from 446 for the year that ended in February.
As a percentage of overall housing closings, new home closings made up 8.6%. This marks a rise from 7.6% of total closings a year earlier. Following a year-over-year decline in February, closings of new and existing homes also slid year-over-year in March.
Pricing and Mortgage Trends
In March, the average price of newly sold homes sank year-over-year to $281,753 per unit, marking a 6.9% decline from the year-earlier figure. This decline compares to a 6.2% boost in February year-over-year.
The average mortgage size on newly sold homes saw a drop year-over-year in contrast to new home prices. In March 2016, average mortgage size on new homes sold was $233,733, down 6.3% from a year earlier. In February 2016, average mortgage size on newly sold homes saw a 16.0% decline 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. Single-family home closings jumped from 91.7% of new closings in March 2015 to all of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings dropped to no part of closings from 8.3% of closings.
There was a 9.1% rise year-over-year in the average unit size of newly sold homes to 1,976 square feet in March 2016. The average size of newly sold homes moved from 1,581 square feet in February 2015 to 1,614 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in March, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 16.4% of existing home closings, down from 19.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.9% in March from 8.7% a year earlier and REO closings moved from 11.2% of existing home closings in March 2015 to 10.6% in March 2016.