The Davenport, IA market saw a drop in new home closings year-over-year in August, and the percentage fall was steeper than July 2015, suggesting the market may be worsening. Closings fell 54.5% from a year earlier to 15. This was after the housing market saw a 10.5% fall year-over-year in July.
A total of 199 new homes were sold during the 12 months that ended in August, down from 217 for the year that ended in July.
New home closings accounted for 2.6% of overall housing closings. This is a fall 5.0% of closings a year earlier. Following a year-over-year decline in July, closings of new and existing homes also sank year-over-year in August.
Pricing and Mortgage Trends
Average value of new homes sold in August was $339,821 per unit, down 13.5% from a year earlier. This drop compares to a 6.1% bump in July year-over-year.
For newly sold homes, the average mortgage size saw a drop year-over-year in contrast to new home prices. Average mortgage size slid 17.7% to $269,608 in August from a year earlier. Average mortgage size jumped 7.1% in July 2015 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units climbed from no part of closings in August 2014 to 6.7% of closings in August 2015. Meanwhile, single-family home closings as a percentage of all new home closings declined to 93.3% of closings from all of closings.
For all new homes sold, the average unit size declined 20.1% year-over-year to 2,110 square feet in August 2015. The average size of newly sold homes moved from 2,886 square feet in July 2014 to 2,742 square feet in July 2015.
Foreclosures and real estate owned (REO) closings increased in August from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 17.9% of existing home closings, up from 16.2% a year earlier. The percentage of existing home closings involving foreclosures stayed at 8.9% of closings in August from a year earlier while REO closings as a percentage of existing home closings rose to 9.0% from 7.3%.