Closings of new homes declined year-over-year in March in the Kansas City, MO market, but the market seemed to be signaling improvement with a percentage fall less steep than in February 2016. New home closings saw a 36.6% decline from a year earlier to 156. This came on the heels of a 37.7% drop year-over-year in February.
A total of 2,224 new homes were sold during the 12 months that ended in March, down from 2,314 for the year that ended in February.
Out of all housing closings, new home closings accounted for 3.7%. This is a drop 5.9% of closings a year earlier. For new and existing homes, closings jumped year-over-year in March after also increasing in February year-over-year.
Pricing and Mortgage Trends
The average price of new homes fell by 1.3% year-over-year to $341,631 per unit in March. This fall is a drop off from the 6.6% decline in February from a year earlier.
The average mortgage size on newly sold homes declined year-over-year in contrast to the average price of new homes. It dropped to $284,496 in March, a 1.9% fall. In February 2016, average mortgage size declined 7.5% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings grew from 95.5% of new closings in March 2015 to 97.4% of closings in March 2016. At the same time, the share of new home closings belonging to attached units sank to 2.6% of closings from 4.5% of closings.
The average unit size of newly sold homes sank 11.0% year-over-year to 2,116 square feet in March 2016. In February, the average size of new homes sold went from 2,499 square feet a year earlier to 2,102 square feet. A drop was also seen in February 2016 when the average size of new homes sold declined 15.9% to 2,102 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 17.6% of closings, below 23.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 7.6% in March from 10.8% a year earlier while REO closings as a percentage of existing home closings sank to 9.9% from 13.1% a year earlier.