In July, the Iowa City, IA market saw a fall year-over-year in new home closings, and the percentage decline, which was steeper than June 2015, gave suggestions that the market may be worsening. Closings declined 19.3% from a year earlier to 46. This came on the heels of a 8.3% decline year-over-year in June.
A total of 289 new homes were sold during the 12 months that ended in July, down from 300 for the year that ended in June.
New home closings accounted for 9.2% of overall housing closings. This is down from the a year earlier when new home closings made up 12.8% of total closings. For new and existing homes, closings climbed year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
In July, there was a 5.6% hike year-over-year in the average price of newly sold homes, reaching $307,598 per unit. This bump is smaller than the 15.1% lift in June year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size rose to $265,515 in July, marking a 7.4% bump compared with a year earlier. In June 2015, average mortgage size gained 10.2% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. Attached unit closings rose from 14.0% of all closings in July 2014 to 15.2% of closings in July 2015. At the same time, the share belonging to single-family homes declined to 84.8% of closings from 86.0% of closings.
For all new homes sold, the average unit size climbed 1.5% year-over-year to 1,715 square feet in July 2015. In June, the average size of new homes sold went from 1,774 square feet a year earlier to 1,735 square feet.
Foreclosures and real estate owned (REO) closings increased in July from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 4.6% of existing home closings, above 4.4% a year earlier. The percentage of existing home closings involving foreclosures went from 1.3% in July 2014 to 1.8% in July 2015 and REO closings moved from 3.1% of existing home closings in July 2014 to 2.9% in July 2015.