Closings of new homes sank year-over-year in July in the Little Rock, AR market, and there were signs of worsening market conditions as the percentage fall was steeper than June 2015. New home closings saw a decline of 74.5% from the year earlier to 25. This was after the housing market saw a 71.6% drop year-over-year in June.
A total of 668 new homes were sold during the 12 months that ended in July, down from 741 for the year that ended in June.
New home closings made up 2.1% of overall housing closings. This is a decline 7.9% of closings a year earlier. Following a year-over-year rise in June, closings of new and existing homes fell year-over-year in July.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 3.3% decline year-over-year in July to $197,348 per unit. This drop compares to a 3.5% hike in June year-over-year.
The average mortgage size on newly sold homes gained year-over-year in contrast to the average price of new homes. In July 2015, average mortgage size gained 1.1% from a year earlier to $179,920. In June 2015, average mortgage size on newly sold homes saw a 8.0% lift year-over-year 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 July 2015. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes rose 9.4% year-over-year to 2,034 square feet in July 2015. In June, the average size of new homes sold went from 1,733 square feet a year earlier to 2,013 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 24.0% of existing home closings, below 24.7% a year earlier. The percentage of existing home closings involving foreclosures went from 11.4% in July 2014 to 11.8% in July 2015 and REO closings as a percentage of existing home closings declined to 12.2% from 13.4% a year earlier.