In the Cedar Rapids, IA market in January, closings of new homes sank year-over-year, a move downward following a rise in December 2015. Closings declined 15.8% from a year earlier to 16. This came on the heels of a 8.6% climb year-over-year in December.
A total of 445 new homes were sold during the 12 months that ended in January, down from 448 for the year that ended in December.
Out of all housing closings, new home closings represented 6.5%. A year ago, 6.4% of total closings were new home closings. For new and existing homes, closings declined in January after also declining in December year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $256,381 per unit in January, up 32.4%from a year earlier. This lift is higher than the 1.2% surge in December year-over-year.
For newly sold homes, the average mortgage size climbed year-over-year along with new home prices. The average mortgage size rose to $230,343 in January, marking a 28.3% boost compared with a year earlier. Average mortgage size slid 5.8% in December 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units increased from 5.3% of closings in January 2015 to a quarter of closings in January 2016. Conversely, the share belonging to single-family homes fell to three quarters of closings from 94.7% of closings.
For all new homes sold, the average unit size slid 5.9% year-over-year to 1,504 square feet in January 2016. The average size of newly sold homes moved from 1,708 square feet in December 2014 to 1,740 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 24.0% of existing closings, lower than 33.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 13.1% in January from 14.6% a year earlier while REO closings as a percentage of existing home closings sank to 10.9% from 18.9% a year earlier.