The Kansas City, MO market saw a drop in new home closings year-over-year in July, and there were hints of worsening market conditions as the percentage drop was steeper than June 2015. New home closings saw a decline of 27.7% from the year earlier to 125. This came on the heels of a 9.6% fall year-over-year in June.
A total of 1,586 new homes were sold during the 12 months that ended in July, down from 1,634 for the year that ended in June.
New home closings accounted for 2.6% of overall housing closings. This is down from the a year earlier when new home closings accounted for 3.8% of total closings. For new and existing homes, closings grew year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
The average price of new homes dropped by 6.3% year-over-year to $306,875 per unit in July. This decline compares to a 9.5% rise in June year-over-year.
The average mortgage size on newly sold homes fell year-over-year in contrast to the average price of new homes. In July 2015, there was a 4.8% fall in the average mortgage size on new homes to $263,543. Average mortgage size climbed 8.3% in June 2015 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes gained from 96.5% in July 2014 to 98.4% of closings in July 2015. Meanwhile, attached units as a percentage of all new home closings slid to 1.6% of closings from 3.5% of closings.
The average unit size of newly sold homes rose 10.7% year-over-year to 2,424 square feet in July 2015. The average size of newly sold homes moved from 2,404 square feet in June 2014 to 1,817 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 16.4% of existing home closings, below 19.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 6.8% in July from 8.8% a year earlier and REO closings moved from 10.6% of existing home closings in July 2014 to 9.6% in July 2015.