New home closings dropped year-over-year in June in the Little Rock, AR market, and the decline was by a larger percentage than the May 2016. New home closings moved from 28 a year earlier to 6 after the figure moved from 34 in May 2015 to 9 in May 2016.
A total of 119 new homes were sold during the 12 months that ended in June, down from 141 for the year that ended in May.
Last year, 28 of 1,162 total closings were new homes, and this percentage saw a decline as new home closings this year made up 6 of the 1,219 total closings. Following a year-over-year increase in May, closings of new and existing homes also increased year-over-year in June.
Pricing and Mortgage Trends
The average price for new homes in June 2016 was $199,633, a shift from $201,108 last year. This came after a 11.0% rise in May year-over-year.
Average mortgage size on new homes increased to $194,000 from $184,961 last year. Average mortgage size on new homes went from $190,239 in May 2015 to $213,112 in May 2016.
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.
The average unit size of newly sold homes fell from 2,013 square feet a year earlier to 1,641 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 21.2% of existing home closings, below 24.2% a year earlier. The percentage of existing home closings involving foreclosures went from 11.2% in June 2015 to 11.9% in June 2016 and REO closings as a percentage of existing home closings fell to 9.3% from 13.0% a year earlier.