In the Huntsville, AL market, new home closings declined year-over-year in January, but the market seemed to be suggesting improvement with a percentage fall less steep than in December 2015. Closings declined 12.5% from a year earlier to 35. This followed a 48.1% fall year-over-year in December.
A total of 749 new homes were sold during the 12 months that ended in January, down from 754 for the year that ended in December.
Of the total number of closings, new home closings made up 7.9%. A year ago, new home closings accounted for 8.6%. For new and existing homes, closings dropped in January after also declining in December year-over-year.
Pricing and Mortgage Trends
Average value of new homes sold in January was $227,280 per unit, down 6.6% from a year earlier. This fall compares to a 5.1% lift in December year-over-year.
The average mortgage size on newly sold homes saw a fall year-over-year in contrast to new home prices. The average mortgage size declined to $217,985 in January, marking a 3.7% decline compared with last year. In December 2015, average mortgage size rose 6.0% 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 January 2016. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
Foreclosures and real estate owned (REO) closings declined in January from a year earlier, but remained a drag on the market. Foreclosures and REO closings, taken together, made up 26.9% of existing closings, lower than 36.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 13.2% in January from 18.7% a year earlier while REO closings as a percentage of existing home closings sank to 13.7% from 18.0% a year earlier.