In June, there was a decline year-over-year in new home closings in the Montgomery, AL market, and the decline was by a larger percentage than the May 2015. New home closings moved from 28 a year earlier to 2 after the figure moved from 20 in May 2014 to 2 in May 2015.
A total of 128 new homes were sold during the 12 months that ended in June, down from 154 for the year that ended in May.
Last year, 28 of 325 total closings were new homes, and this percentage saw a decline as new home closings this year made up 2 of the 278 total closings. Closings of new and existing homes declined year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
The average new home price was $253,152, down from $265,893 a year earlier. This came after a 47.4% rise in May year-over-year.
From the year-ago figure of $237,044, the average mortgage size on new homes moved up to $241,902. Average mortgage size on new homes went from $221,013 in May 2014 to $297,450 in May 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 June 2015.
Foreclosures and real estate owned (REO) closings continued to rise in June from a year earlier and remained a burden on the market. Together, foreclosures plus REO closings represented 35.5% of existing home closings, up from 32.0% a year earlier. The percentage of existing home closings involving foreclosures went from 16.2% in June 2014 to 16.7% in June 2015 and REO closings as a percentage of existing home closings jumped to 18.8% from 15.8%.