In the Kansas City, MO market in June, new home closings sank year-over-year, drawing a downward slope off of a rise in May 2015. New home closings saw a fall of 12.7% from the year earlier to 137. This came on the heels of a 6.4% rise year-over-year in May.
A total of 1,605 new homes were sold during the 12 months that ended in June, down from 1,625 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 2.7% of overall housing closings. New home closings were 3.3% of overall closings last year. Following a year-over-year increase in May, closings of new and existing homes also gained year-over-year in June.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes rose year-over-year to $339,458 in June, up 10.0% from last year. This hike follows a move from $335,285 per unit to $335,937 from May 2014 to May 2015.
There was a boost year-over-year in the average mortgage size on new homes along with new home prices. In June 2015, the average mortgage size was $285,307, up 8.7% from a year earlier. In May 2015, average mortgage size grew 1.8% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units increased from 3.2% of closings in June 2014 to 4.4% of closings in June 2015. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 95.6% of closings from 96.8% of closings.
There was a 25.2% decline year-over-year in the average unit size of newly sold homes to 1,823 square feet in June 2015. In May, the average size of new homes sold went from 2,477 square feet a year earlier to 1,806 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 16.3% of existing home closings, below 19.4% a year earlier. The percentage of existing home closings involving foreclosures slid to 6.0% in June from 8.2% a year earlier and REO closings moved from 11.2% of existing home closings in June 2014 to 10.3% in June 2015.