In June, there was a drop year-over-year in new home closings in the Springfield, MO market, but the decline in percentage terms was not as steep as May 2016, signaling that the market may be stabilizing. There was a 44.7% fall in new home closings from a year earlier. This followed a 68.5% fall year-over-year in May.
A total of 253 new homes were sold during the 12 months that ended in June, down from 270 for the year that ended in May.
As a percentage of overall housing closings, new home closings accounted for 2.3%. This is a drop 3.6% of closings a year earlier. Following a year-over-year rise in May, closings of new and existing homes sank year-over-year in June.
Pricing and Mortgage Trends
In June, there was a 10.0% drop year-over-year in the average per-unit price of newly sold homes, settling at $224,521. This fall compares to a 32.1% bump in May year-over-year.
For newly sold homes, the average mortgage size dropped year-over-year in contrast to average price of new homes. It fell 7.4% in June from a year earlier to $190,690. Average mortgage size increased 31.3% in May 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in June 2016. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
For all new homes sold, the average unit size slid 31.9% year-over-year to 1,573 square feet in June 2016. The average size of newly sold homes moved from 2,025 square feet in May 2015 to 2,014 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 10.4% of existing home closings, down from 13.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.3% in June from 6.7% a year earlier while REO closings as a percentage of existing home closings sank to 5.1% from 6.6% a year earlier.