In the Wichita, KS market in June, new home closings fell year-over-year, moving downward after a gain in May 2016. Closings fell 30.0% from a year earlier to 49. This followed a 21.6% jump year-over-year in May.
A total of 566 new homes were sold during the 12 months that ended in June, down from 587 for the year that ended in May.
Out of all housing closings, new home closings made up 3.8%. This is down from the 5.2% of closings a year earlier. Following a year-over-year rise in May, closings of new and existing homes dropped year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes was $281,095 per unit in June, up 4.2%from a year earlier. This surge is smaller than the 9.6% bump in May year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In June 2016, average mortgage size gained 4.9% from a year earlier to $238,647. Average mortgage size jumped 12.1% in May 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in June 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
For all new homes sold, the average unit size climbed 54.3% year-over-year to 3,582 square feet in June 2016. In May, the average size of new homes sold went from 2,662 square feet a year earlier to 2,601 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 10.7% of closings, below 13.3% a year earlier. The percentage of existing home closings involving foreclosures declined to 2.5% in June from 4.6% a year earlier and REO closings moved from 8.7% of existing home closings in June 2015 to 8.2% in June 2016.