In the Columbus, GA market, new home closings sank year-over-year in June, and the percentage drop, which was steeper than May 2015, gave signals of weakening market conditions. Closings sank 39.4% from a year earlier to 20. This followed a 28.6% drop year-over-year in May.
A total of 250 new homes were sold during the 12 months that ended in June, down from 263 for the year that ended in May.
Out of all housing closings, new home closings accounted for 5.4%. This is down from the 9.5% of closings a year earlier. Closings of new and existing homes increased year-over-year in June following a drop in May year-over-year.
Pricing and Mortgage Trends
In June, the average price of newly sold homes sank year-over-year to $234,240 per unit, marking a 3.8% fall from the year-earlier figure. This fall is larger than the 2.0% drop in May from a year earlier.
For newly sold homes, the average mortgage size saw a gain year-over-year in contrast to new home prices. It increased 4.5% in June from a year earlier to $223,775. In May 2015, average mortgage size fell 1.3% 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. The share of new home closings belonging to single-family homes jumped from 97.0% in June 2014 to all of closings in June 2015. Conversely, the share of new home closings belonging to attached units slid to no part of closings from 3.0% of closings.
The average unit size of newly sold homes dropped 49.5% year-over-year to 1,458 square feet in June 2015. A drop was also seen in May 2015 when the average size of new homes sold sank 19.4% to 2,278 square feet. The average size of newly sold homes moved from 2,825 square feet in May 2014 to 2,278 square feet in May 2015.
Foreclosures and real estate owned (REO) closings decreased in June from a year earlier, but stayed a drag on the market. Foreclosures and REO closings, taken together, made up 35.2% of existing closings, lower than 47.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 18.7% in June from 21.4% a year earlier while REO closings as a percentage of existing home closings slid to 16.4% from 26.5% a year earlier.