In the Des Moines, IA market, closings of new homes grew year-over-year in June, but signs of market leveling were showing as the percentage boost was less than May 2015. Closings climbed 1.4% from a year earlier to 149. This followed a 3.2% climb year-over-year in May.
A total of 1,313 new homes were sold during the 12 months that ended in June, up from 1,311 for the year that ended in May.
New home closings represented 9.3% of overall housing closings. A year earlier, new home closings made up 9.7% of total closings. Closings of new and existing homes jumped in June after staying steady in May from a year earlier.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 1.4% gain year-over-year in June to $286,886 per unit. This bump is smaller than the 5.3% boost in May year-over-year.
For newly sold homes, the average mortgage size saw a hike year-over-year along with new home prices. In June 2015, the average mortgage size was $244,765, a 3.1% surge from a year earlier. Average mortgage size increased 1.9% in May 2015 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes grew from 89.8% in June 2014 to 98.7% of closings in June 2015. At the same time, the share of new home closings belonging to attached units slid to 1.3% of closings from 10.2% of closings.
For all new homes sold, the average unit size dropped 3.9% year-over-year to 1,690 square feet in June 2015. In May, the average size of new homes sold went from 1,709 square feet a year earlier to 1,976 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 10.5% of existing home closings, below 20.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.7% in June from 11.3% a year earlier while REO closings as a percentage of existing home closings fell to 6.8% from 9.6% a year earlier.