Closings of new homes in the Iowa City, IA market dropped year-over-year in September, and the decline was by a larger percentage than the August 2015. New home closings moved from 27 a year earlier to 14 after the figure moved from 29 in August 2014 to 20 in August 2015.

A total of 275 new homes were sold during the 12 months that ended in September, down from 288 for the year that ended in August.

Last year, 27 of 228 total closings were new homes, and this percentage saw a decline as new home closings this year made up 14 of the 190 total closings. Following a year-over-year decline in August, closings of new and existing homes also fell year-over-year in September.

Pricing and Mortgage Trends

The average per-unit price of new homes was $290,464, compared with $331,915 last year. This came after a 11.3% decline in August from a year earlier.

There was a decline in average mortgage size on new homes, going from $278,459 last year to $242,355 in September 2015. Average mortgage size sank 13.2% in August 2015 from a year earlier.

Other Market Trends

The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.

The average unit size of newly sold homes fell from 1,767 square feet a year earlier to 1,604 square feet.

Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 4.0% of closings, below 11.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 1.7% in September from 6.5% a year earlier while REO closings as a percentage of existing home closings slid to 2.3% from 5.0% a year earlier.

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