Closings of new homes in the Little Rock, AR market slid year-over-year in July, and the decline was by a larger percentage than the June 2016. New home closings moved from 25 a year earlier to 5 after the figure moved from 28 in June 2015 to 6 in June 2016.
A total of 99 new homes were sold during the 12 months that ended in July, down from 119 for the year that ended in June.
New home closings represented 5 out of the 1,188 total closings, which is a smaller percentage than the 25 of 1,211 total closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes dropped year-over-year in July.
Pricing and Mortgage Trends
The average per-unit price of new homes was $193,130, compared with $197,348 last year. This followed a move from $201,108 per unit in June 2015 to $199,633 in June 2016.
The average mortgage size moved to $113,938, down from last year's $179,920. Average mortgage size on new homes went from $184,961 in June 2015 to $194,000 in June 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 July 2016.
The average unit size of newly sold homes fell from 2,034 square feet a year earlier to 1,460 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 21.2% of existing closings, lower than 24.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 10.1% in July from 11.9% a year earlier while REO closings as a percentage of existing home closings sank to 11.1% from 12.6% a year earlier.