In the Louisville, KY market in June, closings of new homes slid year-over-year, but the percentage drop was not as steep as May 2015, giving suggestion that the market may be stabilizing. New home closings saw a 43.8% fall from a year earlier to 27. This came on the heels of a 77.5% fall year-over-year in May.
A total of 362 new homes were sold during the 12 months that ended in June, down from 383 for the year that ended in May.
As a percentage of overall housing closings, new home closings accounted for 1.6%. This is down from the 3.1% of closings a year earlier. Closings of new and existing homes grew year-over-year in June after also rising in May year-over-year.
Pricing and Mortgage Trends
In June, the average value of new homes saw a 2.9% rise year-over-year as it grew to $341,001 per unit. This lift compares to a 5.1% decline in May from a year earlier.
For newly sold homes, the average mortgage size climbed year-over-year along with new home prices. In June 2015, the average mortgage size was $252,550, a 9.1% boost from a year earlier. In May 2015, average mortgage size remained level from a year earlier at $273,471.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. Attached unit closings gained from 14.6% of all closings in June 2014 to 44.4% of closings in June 2015. Conversely, the share belonging to single-family homes dropped to 55.6% of closings from 85.4% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 15.9% of existing closings, lower than 20.6% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.1% in June from 9.9% a year earlier and REO closings moved from 10.7% of existing home closings in June 2014 to 10.8% in June 2015.