In March, the Kansas City, MO market saw a decline year-over-year in new home closings, but the fall in percentage terms was an improvement from February 2016, suggesting that the market may be leveling out. There was a 36.6% decline in new home closings from a year earlier. This followed a 37.7% decline year-over-year in February.
A total of 2,224 new homes were sold during the 12 months that ended in March, down from 2,314 for the year that ended in February.
Out of all housing closings, new home closings represented 3.7%. This is down from the 5.9% of closings a year earlier. Following a year-over-year increase in February, closings of new and existing homes also gained year-over-year in March.
Pricing and Mortgage Trends
In March, the average price of newly sold homes dropped year-over-year to $341,631 per unit, marking a 1.3% drop from the year-earlier figure. This decline is a drop off from the 6.6% drop in February from a year earlier.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. Average mortgage size dropped 1.9% to $284,496 in March from a year earlier. Average mortgage size sank 7.5% in February 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings jumped from 95.5% of new closings in March 2015 to 97.4% of closings in March 2016. At the same time, the share of new home closings belonging to attached units declined to 2.6% of closings from 4.5% of closings.
For all new homes sold, the average unit size declined 11.0% year-over-year to 2,116 square feet in March 2016. In February, the average size of new homes sold went from 2,499 square feet a year earlier to 2,102 square feet. A decrease in both the average size and price of newly sold homes was also seen in February 2016 when the average size rose 15.9% to 2,102 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in March, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 17.6% of closings, below 23.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 7.6% in March from 10.8% a year earlier while REO closings as a percentage of existing home closings slid to 9.9% from 13.1% a year earlier.