In the Cedar Rapids, IA market, new home closings declined year-over-year in September, and the percentage drop worsened from August 2015, indicating the market may be weakening. Closings dropped 19.4% from a year earlier to 25. This followed a 11.9% fall year-over-year in August.
A total of 370 new homes were sold during the 12 months that ended in September, down from 376 for the year that ended in August.
New home closings accounted for 5.2% of overall housing closings. New home closings were 5.6% of overall closings last year. 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
Average value of new homes sold in September was $246,060 per unit, down 1.0% from a year earlier. This fall compares to a 20.9% boost in August year-over-year.
Average mortgage size on new homes dropped year-over-year in contrast to new home prices. In September 2015, average mortgage size on new homes sold was $187,823, down 8.7% from a year earlier. Average mortgage size rose 8.5% in August 2015 from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 83.9% of new home closings to 84.0% of closings while attached units have gone from 16.1% of closings to 16.0% of closings.
For all new homes sold, the average unit size slid 8.8% year-over-year to 1,292 square feet in September 2015. In August, the average size of new homes sold went from 1,399 square feet a year earlier to 1,851 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 13.7% of closings, below 18.1% a year earlier. The percentage of existing home closings involving foreclosures went from 6.9% in September 2014 to 6.4% in September 2015 and REO closings as a percentage of existing home closings dropped to 7.3% from 11.2% a year earlier.