New home closings in the Iowa City, IA market declined year-over-year in July, and the percentage fall worsened from June 2016, indicating the market may be weakening. New home closings saw a 17.0% drop from a year earlier to 39. This came after a 11.8% decline year-over-year in June.
A total of 262 new homes were sold during the 12 months that ended in July, down from 270 for the year that ended in June.
New home closings accounted for 10.1% of overall housing closings. This is a boost from 8.8% of closings a year earlier. Closings of new and existing homes declined year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
From July 2015 to July 2016, the average price of newly sold homes went from $315,447 to $312,758. This followed a move from $337,894 per unit in June 2015 to $336,538 in June 2016.
Average mortgage size on new homes went from $266,690 in July 2015 to $268,258 in July 2016. In June 2016, average mortgage size on newly sold homes saw a 4.7% surge 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. Single-family home closings increased from 85.1% of new closings in July 2015 to 92.3% of closings in July 2016. At the same time, the share of new home closings belonging to attached units dropped to 7.7% of closings from 14.9% of closings.
The average unit size of newly sold homes slid 2.5% year-over-year to 1,665 square feet in July 2016. In June, the average size of new homes sold went from 1,727 square feet a year earlier to 1,649 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 3.2% of closings, below 4.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 0.6% in July from 1.6% a year earlier and REO closings moved from 3.3% of existing home closings in July 2015 to 2.6% in July 2016.