In January, there was a drop year-over-year in new home closings in the Ames, IA market, dropping after a year-over-year increase in December 2015. New home closings moved from 11 a year earlier to 6 after the figure moved from 4 in December 2014 to 12 in December 2015.
A total of 99 new homes were sold during the 12 months that ended in January, down from 104 for the year that ended in December.
Last year, 11 of 115 total closings were new homes, and this percentage saw a decline as new home closings this year made up 6 of the 96 total closings. Following a year-over-year increase in December, closings of new and existing homes declined year-over-year in January.
Pricing and Mortgage Trends
The average value of newly sold homes in January 2016 was $273,500, down from last year's $330,636. This came after a 9.8% decline in December from a year earlier.
Average mortgage size on new homes rose from $195,229 to $308,858. Average mortgage size on new homes went from $334,677 in December 2014 to $260,195 in December 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in January 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 7.8% of closings, below 21.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 5.6% in January from 3.8% a year earlier while REO closings as a percentage of existing home closings fell to 2.2% from 17.3% a year earlier.