In May, the Iowa City, IA market saw a decline year-over-year in new home closings, 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 down from the 8.3% of closings a year earlier. After dropping in April from a year earlier, closings of new and existing homes climbed year-over-year in May.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $322,721 in May, up 13.2% from last year. This lift compares to a 5.3% fall in April from a year earlier.
The average mortgage size on newly sold homes saw a decline year-over-year in contrast to new home prices. It dropped 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
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. The share of new home closings belonging to single-family homes rose from 88.0% in May 2015 to 89.5% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings sank to 10.5% of closings from 12.0% of closings.
The average unit size of newly sold homes fell 17.7% year-over-year 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. Foreclosures and REO closings, taken together, represented 11.7% of existing home closings, higher than 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.