New home closings gained year-over-year in March in the Wichita, KS market, snapping back from a decline in February 2016. New home closings saw a 35.0% hike from a year earlier to 54. This was after the housing market saw a 7.1% drop year-over-year in February.

A total of 572 new homes were sold during the 12 months that ended in March, up from 558 for the year that ended in February.

Of the total number of closings, new home closings made up 4.4%. As a part of the whole, new home closings were 3.7% a year earlier. Following a year-over-year increase in February, closings of new and existing homes also climbed year-over-year in March.

Pricing and Mortgage Trends

In March, the average price for new home closings was $265,559, a 5.4% drop from last year. This fall compares to a 9.6% bump in February year-over-year.

The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In March 2016, there was a 6.0% drop in the average mortgage size on new homes to $226,055. In February 2016, average mortgage size on newly sold homes saw a 12.9% gain year-over-year from a year earlier.

Other Market Trends

Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from 97.5% in March 2015 to all of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings slid to no part of closings from 2.5% of closings.

For all new homes sold, the average unit size climbed 6.9% year-over-year to 2,645 square feet in March 2016. In February, the average size of new homes sold went from 2,110 square feet a year earlier to 2,336 square feet.

Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in March, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 14.2% of existing home closings, below 15.0% a year earlier. The percentage of existing home closings involving foreclosures went from 5.0% in March 2015 to 4.6% in March 2016 and REO closings moved from 9.9% of existing home closings in March 2015 to 9.7% in March 2016.

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