In the Springfield, MO market in June, new home closings declined year-over-year, but with a percentage fall less steep than May 2016, there are signs the market may be leveling out. New home closings saw a 44.7% drop from a year earlier to 21. This was after the housing market saw a 68.5% decline year-over-year in May.
A total of 253 new homes were sold during the 12 months that ended in June, down from 270 for the year that ended in May.
Out of all housing closings, new home closings accounted for 2.3%. This is down from the a year earlier when new home closings represented 3.6% of total closings. Following a year-over-year increase in May, closings of new and existing homes dropped year-over-year in June.
Pricing and Mortgage Trends
In June, the average per-unit price of new homes slid by 10.0% year-over-year to $224,521. This drop compares to a 32.1% surge in May year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. It declined to $190,690 in June, a 7.4% fall. In May 2016, average mortgage size grew 31.3% from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in June 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
There was a 31.9% drop year-over-year in the average unit size of newly sold homes to 1,573 square feet in June 2016. The average size of newly sold homes moved from 2,025 square feet in May 2015 to 2,014 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 10.4% of closings, below 13.2% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.3% in June from 6.7% a year earlier while REO closings as a percentage of existing home closings fell to 5.1% from 6.6% a year earlier.