In the Ames, IA market in May, closings of new homes climbed year-over-year, but the increase was less than April 2016. New home closings moved from 9 a year earlier to 10 after the figure moved from 6 in April 2015 to 11 in April 2016.
A total of 114 new homes were sold during the 12 months that ended in May, up from 113 for the year that ended in April.
10 of the 184 total closings were new home closings, a shift on a percentage basis from 9 out of 178 a year earlier. After staying stable in April from a year earlier, closings of new and existing homes grew in May.
Pricing and Mortgage Trends
The average new home price was $288,260, down from $387,000 a year earlier. This was on the heels of a 13.8% decline in April from a year earlier.
Average mortgage size on new homes fell from $320,821 to $248,443. Average mortgage size on new homes went from $264,209 in April 2015 to $207,148 in April 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 May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 8.0% of existing home closings, down from 8.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 2.3% in May from 4.1% a year earlier while REO closings as a percentage of existing home closings jumped to 5.7% from 4.7%.