In May, closings of new homes gained year-over-year in the Des Moines, IA market, recovering from a decline in April 2016. There was a 8.7% climb in new home closings from a year earlier. This came on the heels of a 9.7% decline year-over-year in April.
A total of 1,649 new homes were sold during the 12 months that ended in May, up from 1,636 for the year that ended in April.
Out of all housing closings, new home closings represented 11.4%. They accounted for 10.5% of closings a year earlier. Closings of new and existing homes stayed level after declining in April year-over-year.
Pricing and Mortgage Trends
In May, the average value of new homes saw a 4.0% gain year-over-year as it grew to $295,888 per unit. This bump is smaller than the 11.0% rise in April year-over-year.
The average mortgage size on newly sold homes gained year-over-year along with the average price of new homes. In May 2016, the average mortgage size on newly sold homes saw a 4.6% rise from a year earlier. Average mortgage size increased 5.9% in April 2016 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units grew from 15.3% of closings in May 2015 to 23.3% of closings in May 2016. At the same time, the share belonging to single-family homes slid to 76.7% of closings from 84.7% of closings.
The average unit size of newly sold homes went from 1,717 square feet in May 2015 to 1,704 square feet in May 2016. The average size of newly sold homes moved from 1,708 square feet in April 2015 to 1,761 square feet in April 2016. In April 2016, the average size of newly sold homes climbed 3.1% from the year earlier.
Together, foreclosures plus REO closings accounted for 13.7% of existing home closings. They made up 13.8% in May 2015. The percentage of existing home closings involving foreclosures rose to 7.2% in May from 5.5% a year earlier while REO closings as a percentage of existing home closings fell to 6.5% from 8.3% a year earlier.