Closings of new homes in the Iowa City, IA market declined year-over-year in March, and the decline was by a larger percentage than the February 2016. New home closings moved from 21 a year earlier to 11 after the figure moved from 14 in February 2015 to 9 in February 2016.
A total of 225 new homes were sold during the 12 months that ended in March, down from 235 for the year that ended in February.
New home closings represented 11 out of the 167 total closings, which is a smaller percentage than the 21 of 200 total closings a year earlier. Following a year-over-year decline in February, closings of new and existing homes also fell year-over-year in March.
Pricing and Mortgage Trends
The average new home value went from $272,119 last year to $357,973. This came after a 8.1% surge in February year-over-year.
The average mortgage size on new homes was $348,908, up from $235,812. Average mortgage size on new homes went from $242,768 in February 2015 to $279,432 in February 2016.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
The average unit size of newly sold homes rose from 1,627 square feet a year earlier to 1,816 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in March, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 5.8% of existing home closings, below 12.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 2.6% in March from 5.0% a year earlier while REO closings as a percentage of existing home closings dropped to 3.2% from 7.3% a year earlier.