In the Montgomery, AL market, closings of new homes dropped year-over-year in April, but the decline was less than the year-over-year decline in March. New home closings moved from 12 a year earlier to 5 after the figure moved from 29 in March 2015 to 3 in March 2016.
A total of 119 new homes were sold during the 12 months that ended in April, down from 126 for the year that ended in March.
On a percentage basis, new home closings as a part of total closings decreased to 1.8% from 3.8% a year earlier. Closings of new and existing homes sank year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
The average value of newly sold homes in April 2016 was $227,853, down from last year's $285,879. This was on the heels of a 21.0% decline in March from a year earlier.
Average mortgage size on newly sold homes saw a decline year-over-year from $246,510 to $191,833. Average mortgage size on new homes went from $227,397 in March 2015 to $233,251 in March 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in April 2016.
The average unit size of newly sold homes fell from 2,895 square feet a year earlier to 1,514 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in April from a year earlier and remained a drag on the market. Foreclosures and REO closings, taken together, accounted for 36.3% of existing home closings, higher than 32.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 19.1% in April from 13.6% a year earlier while REO closings as a percentage of existing home closings slid to 17.3% from 18.6% a year earlier.