In the Davenport, IA market in August, new home closings fell year-over-year, and the percentage decline was more severe than July 2015, indicating the market may be worsening. New home closings saw a 54.5% drop from a year earlier to 15. This came after a 10.5% fall year-over-year in July.
A total of 199 new homes were sold during the 12 months that ended in August, down from 217 for the year that ended in July.
New home closings made up 2.6% of overall housing closings. This is down from the 5.0% of closings a year earlier. Closings of new and existing homes slid year-over-year in August after also falling in July year-over-year.
Pricing and Mortgage Trends
In August, the average price for new home closings was $339,821, a 13.5% decline from last year. This fall compares to a 6.1% surge in July year-over-year.
The average mortgage size on newly sold homes declined year-over-year in contrast to the average price of new homes. It fell 17.7% in August from a year earlier, reaching $269,608. In July 2015, average mortgage size on newly sold homes saw a 7.1% bump year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units increased from no part of closings in August 2014 to 6.7% of closings in August 2015. Conversely, the share belonging to single-family homes declined to 93.3% of closings from all of closings.
For all new homes sold, the average unit size fell 20.1% year-over-year to 2,110 square feet in August 2015. The average size of newly sold homes moved from 2,886 square feet in July 2014 to 2,742 square feet in July 2015.
Foreclosures and real estate owned (REO) closings increased in August from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 17.9% of existing home closings, up from 16.2% a year earlier. The percentage of existing home closings involving foreclosures stayed at 8.9% of closings in August from a year earlier while REO closings as a percentage of existing home closings gained to 9.0% from 7.3%.