In the Kansas City, MO market, closings of new homes fell year-over-year in March, but the fall in percentage terms was not as steep as February 2016, signaling market improvement. There was a 36.6% drop in new home closings from a year earlier. This was after the housing market saw a 37.7% fall 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 represented 3.7%. This is down from the 5.9% of closings a year earlier. Following a year-over-year increase in February, closings of new and existing homes also gained year-over-year in March.
Pricing and Mortgage Trends
The average price of newly sold homes declined 1.3% year-over-year in March to $341,631 per unit. 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 dropped year-over-year in contrast to the average price of new homes. It fell 1.9% in March from a year earlier, reaching $284,496. In February 2016, average mortgage size on newly sold homes saw a 7.5% fall 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. Single-family home closings increased 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 dropped to 2.6% of closings from 4.5% of closings.
There was a 11.0% drop year-over-year in the average unit size of newly sold homes 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 fall 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 drop from a year earlier in March, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 17.6% of existing closings, lower than 23.9% a year earlier. The percentage of existing home closings involving foreclosures sank to 7.6% in March from 10.8% a year earlier while REO closings as a percentage of existing home closings fell to 9.9% from 13.1% a year earlier.