In the St. Louis, MO market in November, new home closings declined year-over-year, and the percentage drop was steeper than October 2015, giving suggestion the market may be worsening. There was a 76.3% decline in new home closings from a year earlier. This was after the housing market saw a 72.1% drop year-over-year in October.
A total of 1,959 new homes were sold during the 12 months that ended in November, down from 2,136 for the year that ended in October.
New home closings accounted for 1.4% of overall housing closings. This is a fall 5.9% of closings a year earlier. Closings of new and existing homes grew in November after staying steady in October from a year earlier.
Pricing and Mortgage Trends
In November, the average price of newly sold homes slid year-over-year to $236,600 per unit, marking a 27.2% decline from the year-earlier figure. This fall compares to a 3.4% gain in October year-over-year.
The average mortgage size on newly sold homes fell year-over-year in contrast to the average price of new homes. Average mortgage size declined 13.3% to $223,733 in November from a year earlier. Average mortgage size rose 6.3% in October 2015 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings jumped from 81.5% of new closings in November 2014 to 92.7% of closings in November 2015. Meanwhile, attached units as a percentage of all new home closings declined to 7.3% of closings from 18.5% of closings.
There was a 22.5% decline year-over-year in the average unit size of newly sold homes to 1,713 square feet in November 2015. In October, the average size of new homes sold went from 2,016 square feet a year earlier to 2,178 square feet.
Foreclosures and real estate owned (REO) closings fell in November from a year earlier, but remained a burden on the market. Together, foreclosures plus REO closings represented 25.9% of existing home closings, down from 26.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 15.3% in November from 11.5% a year earlier while REO closings as a percentage of existing home closings slid to 10.6% from 14.7% a year earlier.