Closings of new homes in the Kansas City, MO market slid year-over-year in August, but the percentage fall was an improvement from July 2015, suggesting the market may be evening out. New home closings saw a decline of 17.1% from the year earlier to 107. In comparison, new home closings in the same month last year saw a 28.9% drop year-over-year in July.
A total of 1,588 new homes were sold during the 12 months that ended in August, down from 1,610 for the year that ended in July.
Out of all housing closings, new home closings accounted for 2.2%. A year ago, new home closings accounted for 2.5%. Following a year-over-year increase in July, closings of new and existing homes sank year-over-year in August.
Pricing and Mortgage Trends
The average price of newly sold homes rose year-over-year 3.8% in August to $321,170 per unit. This lift compares to a 4.5% decline in July from a year earlier.
Average mortgage size on new homes climbed year-over-year along with new home prices. In August 2015, the average mortgage size on newly sold homes saw a 2.2% hike from a year earlier. In July 2015, average mortgage size on newly sold homes saw a 2.8% drop from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes gained from 98.4% in August 2014 to all of closings in August 2015. Meanwhile, attached units as a percentage of all new home closings dropped to no part of closings from 1.6% of closings.
For all new homes sold, the average unit size dropped 20.3% year-over-year to 1,717 square feet in August 2015. In July, the average size of new homes sold went from 2,190 square feet a year earlier to 2,424 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 16.2% of existing home closings, down from 31.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.5% in August from 19.9% a year earlier and REO closings moved from 11.4% of existing home closings in August 2014 to 10.7% in August 2015.