Closings of new homes in the Mobile, AL market declined year-over-year in May, a downhill move after a bump in April 2016. There was a 21.6% decline in new home closings from a year earlier. This came on the heels of a 7.1% jump year-over-year in April.
A total of 366 new homes were sold during the 12 months that ended in May, down from 374 for the year that ended in April.
New home closings represented 4.2% of overall housing closings. This is a fall 5.6% of closings a year earlier. Following a year-over-year increase in April, closings of new and existing homes also gained year-over-year in May.
Pricing and Mortgage Trends
From May 2015 to May 2016, the average price of newly sold homes went from $214,401 to $215,423. This was on the heels of a 8.9% drop in April from a year earlier.
The average mortgage size on newly sold homes saw a rise year-over-year along with new home prices. In May 2016, the average mortgage size was $196,966, up 2.0% from a year earlier. Average mortgage size climbed 2.1% in April 2016 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 May 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size declined 26.1% year-over-year to 1,453 square feet in May 2016. In April, the average size of new homes sold went from 1,958 square feet a year earlier to 3,013 square feet.
Foreclosures and real estate owned (REO) closings declined in May from a year earlier, but remained a drag on the market. Foreclosures and REO closings, taken together, represented 31.3% of existing closings, lower than 34.6% a year earlier. The percentage of existing home closings involving foreclosures went from 16.2% in May 2015 to 15.3% in May 2016 and REO closings as a percentage of existing home closings fell to 16.1% from 18.4% a year earlier.