In July, there was a fall year-over-year in new home closings in the Louisville, KY market, and the percentage drop, which was steeper than June 2015, gave hints that the market may be worsening. Closings slid 74.6% from a year earlier to 15. This followed a 41.2% decline year-over-year in June.
A total of 353 new homes were sold during the 12 months that ended in July, down from 397 for the year that ended in June.
Out of all housing closings, new home closings accounted for 0.9%. This is a fall 4.1% of closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes also gained year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes slid 9.0% year-over-year in July to $352,419 per unit. This drop compares to a 4.8% lift in June year-over-year.
The average mortgage size on new homes moved north year-over-year in contrast to new home prices. The average mortgage size saw a 17.5% hike year-over-year to $294,477 in July. In June 2015, average mortgage size increased 11.1% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. Attached unit closings climbed from 5.1% of all closings in July 2014 to 13.3% of closings in July 2015. At the same time, the share belonging to single-family homes fell to 86.7% of closings from 94.9% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 13.0% of existing home closings, below 18.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.6% in July from 8.9% a year earlier while REO closings as a percentage of existing home closings fell to 8.4% from 9.6% a year earlier.