In the Cedar Rapids, IA market, closings of new homes declined year-over-year in November, a shift downward off a surge in October 2015. New home closings saw a decline of 7.7% from the year earlier to 24. This followed a 11.8% rise year-over-year in October.
A total of 368 new homes were sold during the 12 months that ended in November, down from 370 for the year that ended in October.
New home closings made up 6.9% of overall housing closings. A year ago, new home closings represented 6.5%. Following a year-over-year rise in October, closings of new and existing homes dropped year-over-year in November.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year 21.5% in November to $297,325 per unit. This rise is higher than the 2.5% surge in October year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In November 2015, the average mortgage size was $246,626, up 10.0% from a year earlier. In October 2015, average mortgage size on newly sold homes saw a 2.3% lift 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. Single-family home closings jumped from 73.1% of new closings in November 2014 to 91.7% of closings in November 2015. Meanwhile, attached units as a percentage of all new home closings sank to 8.3% of closings from 26.9% of closings.
There was a 11.9% hike year-over-year in the average unit size of newly sold homes to 1,572 square feet in November 2015. The average size of newly sold homes moved from 1,921 square feet in October 2014 to 2,902 square feet in October 2015. An increase in both the average size and price of newly sold homes was also seen in October 2015 when the average size jumped 51.1% to 2,902 square feet.
Foreclosures and real estate owned (REO) closings increased in November from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 15.4% of existing home closings, up from 15.3% a year earlier. The percentage of existing home closings involving foreclosures rose to 10.2% in November from 7.5% a year earlier while REO closings as a percentage of existing home closings slid to 5.2% from 7.8% a year earlier.