Closings of new homes dropped year-over-year in October in the Louisville, KY market, but the decline was less than the year-over-year decline in September. New home closings moved from 51 a year earlier to 17 after the figure moved from 45 in September 2014 to 14 in September 2015.
A total of 256 new homes were sold during the 12 months that ended in October, down from 290 for the year that ended in September.
New home closings represented 1.3% of overall housing closings. This is down from the 4.4% of closings a year earlier. Closings of new and existing homes grew year-over-year in October after also rising in September year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 2.9% gain year-over-year to $328,001 per unit in October. This lift compares to a 10.4% decline in September from a year earlier.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. In October 2015, there was a 1.6% drop in the average mortgage size on new homes to $247,083. Average mortgage size on new homes went from $253,106 in September 2014 to $245,547 in September 2015.
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 share of new home closings belonging to attached units rose from 2.0% of closings in October 2014 to 17.6% of closings in October 2015. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 82.4% of closings from 98.0% of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in October, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 15.6% of closings, below 24.0% a year earlier. The percentage of existing home closings involving foreclosures slid to 6.4% in October from 11.0% a year earlier while REO closings as a percentage of existing home closings sank to 9.2% from 13.0% a year earlier.