In the Kansas City, MO market in April, closings of new homes declined year-over-year, and there were hints of weakening market conditions with a percentage fall steeper than that of March 2016. New home closings saw a decline of 47.2% from the year earlier to 152. This was after the housing market saw a 37.0% fall year-over-year in March.
A total of 2,088 new homes were sold during the 12 months that ended in April, down from 2,224 for the year that ended in March.
Out of all housing closings, new home closings represented 3.5%. This is down from the 6.1% of closings a year earlier. Following a year-over-year rise in March, closings of new and existing homes dropped year-over-year in April.
Pricing and Mortgage Trends
In April, the average price of newly sold homes increased year-over-year to $353,830 per unit, a 2.1% boost. This hike compares to a 1.3% drop in March from a year earlier.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. It gained to $299,155 in April, a 2.3% hike. Average mortgage size slid 1.9% in March 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings jumped from 94.4% of new closings in April 2015 to 96.7% of closings in April 2016. Conversely, the share of new home closings belonging to attached units fell to 3.3% of closings from 5.6% of closings.
For all new homes sold, the average unit size increased 2.9% year-over-year to 2,394 square feet in April 2016. In March, the average size of new homes sold went from 2,377 square feet a year earlier to 2,108 square feet. This boost was somewhat steeper than the price bump, which was also seen in March 2016 when the average size of new homes sold jumped 11.3% to 2,108 square feet from a year earlier.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 15.0% of existing home closings, below 18.8% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.9% in April from 7.7% a year earlier while REO closings as a percentage of existing home closings slid to 9.1% from 11.1% a year earlier.