New home closings sank year-over-year in May in the Little Rock, AR market, and the decline was by a larger percentage than the April 2016. New home closings moved from 34 a year earlier to 9 after the figure moved from 34 in April 2015 to 10 in April 2016.
A total of 141 new homes were sold during the 12 months that ended in May, down from 166 for the year that ended in April.
New home closings were 9 out of the 1,350 total closings, down on a percentage basis from 34 of 1,148 a year earlier. Closings of new and existing homes climbed year-over-year in May following a decline in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose to $248,167 from last year's $223,636. This was on the heels of a 1.6% fall in April from a year earlier.
From the year-ago figure of $190,239, the average mortgage size on new homes moved up to $213,112. Average mortgage size on new homes went from $203,173 in April 2015 to $189,533 in April 2016.
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.
The average unit size of newly sold homes fell from 1,842 square feet a year earlier to 1,574 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in May from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, accounted for 25.2% of existing home closings, up from 21.3% a year earlier. The percentage of existing home closings involving foreclosures rose to 12.7% in May from 10.2% a year earlier while REO closings as a percentage of existing home closings gained to 12.5% from 11.0%.