In the Springfield, MO market in July, new home closings slid year-over-year, and the percentage decline was more severe than June 2016, indicating the market may be worsening. New home closings saw a fall of 57.1% from the year earlier to 15. This came on the heels of a 44.7% drop year-over-year in June.
A total of 233 new homes were sold during the 12 months that ended in July, down from 253 for the year that ended in June.
As a percentage of overall housing closings, new home closings accounted for 1.5%. This is down from the a year earlier when new home closings represented 3.5% of total closings. Closings of new and existing homes grew year-over-year in July following a decline in June year-over-year.
Pricing and Mortgage Trends
The average value for new homes sold in July 2016 was $216,347, a move from $216,606 a year earlier. This followed a 10.0% drop in June from a year earlier.
The average mortgage size on newly sold homes saw a drop year-over-year in contrast to new home prices. In July 2016, average mortgage size on new homes sold was $180,809, down 4.0% from a year earlier. In June 2016, average mortgage size on newly sold homes saw a 7.4% fall 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 July 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
For all new homes sold, the average unit size fell 25.3% year-over-year to 1,472 square feet in July 2016. The average size of newly sold homes moved from 2,310 square feet in June 2015 to 1,573 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 8.9% of existing home closings, below 10.8% a year earlier. The percentage of existing home closings involving foreclosures went from 5.7% in July 2015 to 4.9% in July 2016 and REO closings as a percentage of existing home closings declined to 3.9% from 5.1% a year earlier.