In May, the St. Louis, MO market saw a drop year-over-year in new home closings, but the market seemed to be suggesting improvement with a percentage fall less steep than in April 2016. There was a 82.0% fall in new home closings from a year earlier. This followed a 82.4% decline year-over-year in April.
A total of 976 new homes were sold during the 12 months that ended in May, down from 1,135 for the year that ended in April.
New home closings made up 0.7% of overall housing closings. This is down from the 3.5% of closings a year earlier. Following a year-over-year decline in April, closings of new and existing homes also declined year-over-year in May.
Pricing and Mortgage Trends
In May, the average price of newly sold homes jumped year-over-year to $558,872 per unit, a 80.7% rise. This bump follows a move from $285,822 per unit in April 2015 to $284,389 in April 2016.
The average mortgage size on newly sold homes saw a lift year-over-year along with new home prices. It climbed to $400,354 in May, a 53.6% rise. In April 2016, average mortgage size on newly sold homes saw a 9.4% hike year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes increased from 88.1% in May 2015 to 97.1% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings fell to 2.9% of closings from 11.9% of closings.
For all new homes sold, the average unit size increased 16.5% year-over-year to 2,570 square feet in May 2016. In April, the average size of new homes sold went from 2,007 square feet a year earlier to 2,054 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 16.4% of existing home closings, below 21.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.0% in May from 8.6% a year earlier while REO closings as a percentage of existing home closings declined to 9.4% from 13.1% a year earlier.