In July, there was a decline year-over-year in new home closings in the Fort Smith, AR market, but the decline was less than the year-over-year decline in June. New home closings moved from 14 a year earlier to 1 after the figure moved from 18 in June 2015 to 1 in June 2016.
A total of 59 new homes were sold during the 12 months that ended in July, down from 72 for the year that ended in June.
Last year, 14 of 362 total closings were new homes, and this percentage saw a decline as new home closings this year made up 1 of the 308 total closings. Following a year-over-year decline in June, closings of new and existing homes also fell year-over-year in July.
Pricing and Mortgage Trends
The average value of newly sold homes in July 2016 was $150,500, down from last year's $184,256. This was on the heels of a 1.6% fall in June from a year earlier.
Average mortgage size on new homes fell from $180,473 to $154,500. Average mortgage size on new homes went from $199,690 in June 2015 to $211,000 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.
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. Out of all existing home closings, foreclosures combined with REO closings accounted for 19.9% of closings, below 22.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.1% in July from 10.6% a year earlier and REO closings moved from 12.1% of existing home closings in July 2015 to 11.7% in July 2016.