New home closings in the Wichita, KS market declined year-over-year in December, and there were hints the market may be worsening with a percentage fall steeper than that of November 2015. Closings slumped 24.2% from a year earlier to 50. This followed a 21.7% fall year-over-year in November.
A total of 564 new homes were sold during the 12 months that ended in December, down from 580 for the year that ended in November.
As a percentage of overall housing closings, new home closings made up 3.8%. This is a decline 5.4% of closings a year earlier. Closings of new and existing homes increased year-over-year in December following a decline in November year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $284,024 per unit in December, up 3.1%from a year earlier. This hike is smaller than the 10.2% lift in November year-over-year.
Average mortgage size on new homes went from $235,312 in December 2014 to $237,404 in December 2015. In November 2015, average mortgage size climbed 8.3% from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in December 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size jumped 12.9% year-over-year to 2,528 square feet in December 2015. The average size of newly sold homes moved from 2,275 square feet in November 2014 to 2,271 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to rise in December from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, made up 27.4% of existing home closings, up from 23.4% a year earlier. The percentage of existing home closings involving foreclosures rose to 20.1% in December from 14.1% a year earlier while REO closings as a percentage of existing home closings slid to 7.3% from 9.3% a year earlier.