In the Birmingham, AL market, closings of new homes fell year-over-year in June, but the decline was less than the year-over-year decline in May. New home closings moved from 15 a year earlier to 11 after the figure moved from 12 in May 2014 to 4 in May 2015.
A total of 137 new homes were sold during the 12 months that ended in June, down from 141 for the year that ended in May.
New home closings represented 11 out of the 550 total closings, which is a smaller percentage than the 15 of 500 total closings a year earlier. Following a year-over-year increase in May, closings of new and existing homes also grew year-over-year in June.
Pricing and Mortgage Trends
The average per-unit price of new homes was $191,679, compared with $220,496 last year. This followed a 23.6% decline in May from a year earlier.
The average mortgage size moved to $185,874, down from last year's $203,116. Average mortgage size on new homes went from $187,247 in May 2014 to $169,028 in May 2015.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
The average unit size of newly sold homes fell from 2,221 square feet a year earlier to 1,413 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 20.2% of existing home closings, down from 27.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 9.6% in June from 13.6% a year earlier while REO closings as a percentage of existing home closings slid to 10.6% from 13.4% a year earlier.