In May, there was a decline year-over-year in new home closings in the Iowa City, IA market, but the decline was less than the year-over-year decline in April. New home closings moved from 25 a year earlier to 19 after the figure moved from 23 in April 2015 to 14 in April 2016.
A total of 234 new homes were sold during the 12 months that ended in May, down from 240 for the year that ended in April.
Out of all housing closings, new home closings represented 5.1%. This is a drop 8.3% of closings a year earlier. Closings of new and existing homes jumped year-over-year in May following a fall in April year-over-year.
Pricing and Mortgage Trends
In May, the average price of newly sold homes increased year-over-year to $322,721 per unit, a 13.2% hike. This lift compares to a 5.3% drop in April from a year earlier.
The average mortgage size on newly sold homes fell year-over-year in contrast to the average price of new homes. It fell 1.3% in May from a year earlier, reaching $245,071. Average mortgage size on new homes went from $255,299 in April 2015 to $242,797 in April 2016.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings climbed from 88.0% of new closings in May 2015 to 89.5% of closings in May 2016. At the same time, the share of new home closings belonging to attached units sank to 10.5% of closings from 12.0% of closings.
There was a 17.7% drop year-over-year in the average unit size of newly sold homes to 1,397 square feet in May 2016. In April, the average size of new homes sold went from 1,663 square feet a year earlier to 1,882 square feet.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings represented 11.7% of existing home closings, up from 3.6% a year earlier. The percentage of existing home closings involving foreclosures rose to 8.8% in May from 1.1% a year earlier and REO closings moved from 2.5% of existing home closings in May 2015 to 2.8% in May 2016.