In November, the Birmingham, AL market saw a fall year-over-year in new home closings, but the decline was less than the year-over-year decline in October. New home closings moved from 96 a year earlier to 23 after the figure moved from 97 in October 2014 to 14 in October 2015.
A total of 769 new homes were sold during the 12 months that ended in November, down from 842 for the year that ended in October.
As a percentage of overall housing closings, new home closings accounted for 2.0%. This is down from the 8.0% of closings a year earlier. Following a year-over-year decline in October, closings of new and existing homes also dropped year-over-year in November.
Pricing and Mortgage Trends
Average value of new homes sold in November was $271,451 per unit, down 3.4% from a year earlier. This drop is a drop off from the 19.7% fall in October from a year earlier.
Average mortgage size on new homes climbed year-over-year in contrast to new home prices. In November 2015, the average mortgage size on newly sold homes saw a 5.3% gain from a year earlier. Average mortgage size on new homes went from $254,632 in October 2014 to $211,380 in October 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in November 2015. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
Foreclosures and real estate owned (REO) closings declined in November from a year earlier, but remained a drag on the market. Foreclosures and REO closings, taken together, made up 31.9% of existing closings, lower than 36.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 16.9% in November from 20.1% a year earlier and REO closings moved from 15.9% of existing home closings in November 2014 to 15.0% in November 2015.