In the Huntsville, AL market in June, new home closings declined year-over-year, but compared with May 2016, the percentage drop was less steep, hinting the market may be strengthening. New home closings saw a decline of 12.6% from the year earlier to 111. This was after the housing market saw a 20.7% drop year-over-year in May.
A total of 1,189 new homes were sold during the 12 months that ended in June, down from 1,205 for the year that ended in May.
Out of all housing closings, new home closings made up 11.2%. This is down from the 13.3% of closings a year earlier. For new and existing homes, closings grew year-over-year in June after also increasing in May year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 6.8% fall year-over-year to $249,145 per unit in June. This decline is larger than the 4.1% drop in May from a year earlier.
For newly sold homes, the average mortgage size dropped year-over-year in contrast to average price of new homes. In June 2016, average mortgage size declined 9.9% from a year earlier to $218,428. Average mortgage size fell 1.5% in May 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 99.2% of new home closings to 99.1% of closings while attached units have gone from 0.8% of closings to 0.9% of closings.
The average unit size of newly sold homes sank 5.7% year-over-year to 2,505 square feet in June 2016. In May, the average size of new homes sold went from 2,594 square feet a year earlier to 2,437 square feet. A decline was also seen in May 2016 when the average size of new homes sold declined 6.1% to 2,437 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 17.6% of existing home closings, below 24.7% a year earlier. The percentage of existing home closings involving foreclosures sank to 8.6% in June from 10.8% a year earlier while REO closings as a percentage of existing home closings slid to 9.0% from 13.9% a year earlier.