In September, there was a fall year-over-year in new home closings in the Iowa City, IA market, and the decline was by a larger percentage than the August 2015. New home closings moved from 27 a year earlier to 14 after the figure moved from 29 in August 2014 to 20 in August 2015.
A total of 275 new homes were sold during the 12 months that ended in September, down from 288 for the year that ended in August.
New home closings represented 14 out of the 190 total closings, which is a smaller percentage than the 27 of 228 total closings a year earlier. Following a year-over-year decline in August, closings of new and existing homes also declined year-over-year in September.
Pricing and Mortgage Trends
The average new home price was $290,464, down from $331,915 a year earlier. This came after a 11.3% decline in August from a year earlier.
The average mortgage size moved to $242,355, down from last year's $278,459. In August 2015, average mortgage size on newly sold homes saw a 13.2% fall from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
The average unit size of newly sold homes fell from 1,767 square feet a year earlier to 1,604 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 4.0% of closings, below 11.4% a year earlier. The percentage of existing home closings involving foreclosures slid to 1.7% in September from 6.5% a year earlier while REO closings as a percentage of existing home closings dropped to 2.3% from 5.0% a year earlier.