In July, the Wichita, KS market saw a drop year-over-year in new home closings, and the percentage drop was steeper than June 2015, giving suggestion the market may be worsening. New home closings saw a 3.0% decline from a year earlier to 64. This came on the heels of a 2.8% decline year-over-year in June.
A total of 595 new homes were sold during the 12 months that ended in July, down from 597 for the year that ended in June.
New home closings, which accounted for 4.6% of overall closings, were relatively stable compared with a year earlier. Following a year-over-year rise in June, closings of new and existing homes sank year-over-year in July.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 8.6% decline year-over-year in July to $254,051 per unit. This drop is a drop off from the 11.7% decline in June from a year earlier.
The average mortgage size on newly sold homes saw a drop year-over-year in contrast to new home prices. In July 2015, average mortgage size sank 9.3% from a year earlier to $215,743. In June 2015, average mortgage size on newly sold homes saw a 13.1% drop 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 July 2015. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
There was a 4.8% lift year-over-year in the average unit size of newly sold homes to 2,541 square feet in July 2015. In June, the average size of new homes sold went from 2,870 square feet a year earlier to 2,321 square feet.
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 15.9% of existing home closings, below 21.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.5% in July from 13.1% a year earlier and REO closings moved from 7.8% of existing home closings in July 2014 to 8.4% in July 2015.