In October, the Birmingham, AL market saw a fall year-over-year in new home closings, and the decline was by a larger percentage than the September 2015. New home closings moved from 97 a year earlier to 14 after the figure moved from 149 in September 2014 to 41 in September 2015.

A total of 848 new homes were sold during the 12 months that ended in October, down from 931 for the year that ended in September.

New home closings were 14 out of the 1,154 total closings, down on a percentage basis from 97 of 1,561 a year earlier. After remaining steady in September from a year earlier, closings of new and existing homes declined year-over-year in October.

Pricing and Mortgage Trends

The average value of newly sold homes in October 2015 was $238,899, down from last year's $297,586. This followed a 6.0% decline in September from a year earlier.

Average mortgage size on new homes fell from $254,632 to $211,380. In September 2015, average mortgage size fell 3.0% from a year earlier.

Other Market Trends

As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.

The average unit size of newly sold homes rose from 2,661 square feet a year earlier to 2,964 square feet.

Foreclosures and real estate owned (REO) closings fell in October from a year earlier, but remained a drag on the market. Foreclosures and REO closings, taken together, accounted for 28.8% of existing closings, lower than 32.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 13.6% in October from 19.4% a year earlier while REO closings as a percentage of existing home closings grew to 15.2% from 12.7%.

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