New home closings slid year-over-year in January in the Montgomery, AL market, and the decline was by a larger percentage than the December 2015. New home closings moved from 13 a year earlier to none after the figure moved from 36 in December 2014 to 8 in December 2015.
On a percentage basis, new home closings as a part of total closings decreased to no part from 5.7% a year earlier. Following a year-over-year decline in December, closings of new and existing homes also fell year-over-year in January.
Other Market Trends
There were no new home closings in January 2016, but average size of newly sold homes was 2,272 a year earlier.
Foreclosures and real estate owned (REO) closings continued to rise in January from a year earlier and remained a drag on the market. Foreclosures and REO closings, taken together, made up 60.6% of existing home closings, higher than 49.8% a year earlier. The percentage of existing home closings involving foreclosures rose to 27.3% in January from 22.6% a year earlier while REO closings as a percentage of existing home closings gained to 33.3% from 27.2%.