In the Montgomery, AL market in November, new home closings dropped year-over-year, and the decline was by a larger percentage than the October 2015. New home closings moved from 20 a year earlier to 2 after the figure moved from 31 in October 2014 to 5 in October 2015.
A total of 199 new homes were sold during the 12 months that ended in November, down from 217 for the year that ended in October.
On a percentage basis, new home closings as a part of total closings decreased to 1.2% from 8.8% a year earlier. Following a year-over-year decline in October, closings of new and existing homes also slid year-over-year in November.
Pricing and Mortgage Trends
The average price of new homes rose to $297,952 from last year's $264,016. This followed a 5.6% lift in October year-over-year.
From the year-ago figure of $234,573, the average mortgage size on new homes moved up to $300,026. Average mortgage size on new homes went from $238,164 in October 2014 to $241,170 in October 2015.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
The average unit size of newly sold homes rose from 2,562 square feet a year earlier to 4,014 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in November from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, accounted for 40.8% of existing home closings, up from 30.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 13.0% in November from 16.9% a year earlier while REO closings as a percentage of existing home closings climbed to 27.8% from 14.0%.