The Montgomery, AL market saw a drop in new home closings year-over-year in September, and the decline was by a larger percentage than the August 2015. New home closings moved from 33 a year earlier to 7 after the figure moved from 22 in August 2014 to 10 in August 2015.
A total of 243 new homes were sold during the 12 months that ended in September, down from 269 for the year that ended in August.
New home closings were 7 out of the 261 total closings, down on a percentage basis from 33 of 381 a year earlier. Following a year-over-year decline in August, closings of new and existing homes also fell year-over-year in September.
Pricing and Mortgage Trends
The average value of newly sold homes in September 2015 was $249,529, down from last year's $292,412. This was on the heels of a 21.6% lift in August year-over-year.
There was a decline in average mortgage size on new homes, going from $251,069 last year to $223,367 in September 2015. Average mortgage size on new homes went from $200,087 in August 2014 to $278,352 in August 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.
Foreclosures and real estate owned (REO) closings fell in September from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 43.3% of closings, below 48.3% a year earlier. The percentage of existing home closings involving foreclosures declined to 16.9% in September from 33.0% a year earlier while REO closings as a percentage of existing home closings climbed to 26.4% from 15.2%.