In the Louisville, KY market, closings of new homes declined year-over-year in June, and the market seemed to be worsening in light of the percentage drop steeper than May 2016. There was a 43.8% drop in new home closings from a year earlier. This came on the heels of a 12.7% decline year-over-year in May.
A total of 593 new homes were sold during the 12 months that ended in June, down from 628 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 2.5%. This is down from the a year earlier when new home closings represented 4.4% of total closings. Following a year-over-year rise in May, closings of new and existing homes fell year-over-year in June.
Pricing and Mortgage Trends
In June, the average value of new homes saw a 3.4% gain year-over-year as it grew to $381,588 per unit. This bump is smaller than the 11.9% surge in May year-over-year.
For newly sold homes, the average mortgage size rose year-over-year along with new home prices. In June 2016, average mortgage size grew 8.4% from a year earlier to $284,928. In May 2016, average mortgage size climbed 9.3% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings gained from 88.8% of new closings in June 2015 to 95.6% of closings in June 2016. At the same time, the share of new home closings belonging to attached units sank to 4.4% of closings from 11.2% of closings.
Foreclosures and real estate owned (REO) closings increased in June from a year earlier and did not look to be a burden on the market. Together, foreclosures plus REO closings made up 16.7% of existing home closings, up from 16.4% a year earlier. The percentage of existing home closings involving foreclosures rose to 8.9% in June from 5.6% a year earlier while REO closings as a percentage of existing home closings dropped to 7.8% from 10.8% a year earlier.