New home closings in the Cedar Rapids, IA market slid year-over-year in April, and the percentage drop, which was steeper than March 2016, gave signals of weakening market conditions. Closings fell 48.6% from a year earlier to 19. This came on the heels of a 8.3% drop year-over-year in March.
A total of 425 new homes were sold during the 12 months that ended in April, down from 443 for the year that ended in March.
As a percentage of overall housing closings, new home closings accounted for 4.4%. This is down from the a year earlier when new home closings accounted for 7.4% of total closings. Following a year-over-year decline in March, closings of new and existing homes also dropped year-over-year in April.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year in April to $255,368 per unit, a rise of 15.2%. This bump compares to a 7.9% fall in March from a year earlier.
For newly sold homes, the average mortgage size saw a hike year-over-year along with new home prices. In April 2016, the average mortgage size was $228,787, a 20.2% bump from a year earlier. In March 2016, average mortgage size fell 7.5% 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 grew from 78.4% of new closings in April 2015 to 84.2% of closings in April 2016. Conversely, the share of new home closings belonging to attached units declined to 15.8% of closings from 21.6% of closings.
There was a 20.5% hike year-over-year in the average unit size of newly sold homes to 1,761 square feet in April 2016. The average size of newly sold homes moved from 1,811 square feet in March 2015 to 1,976 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 14.1% of existing home closings, below 14.8% a year earlier. The percentage of existing home closings involving foreclosures rose to 9.0% in April from 5.6% a year earlier while REO closings as a percentage of existing home closings sank to 5.1% from 9.2% a year earlier.