New home closings in the Davenport, IA market dropped year-over-year in November, but the market seemed to be signaling improvement with a percentage fall less steep than in October 2015. There was a 21.1% drop in new home closings from a year earlier. This came on the heels of a 25.0% fall year-over-year in October.
A total of 195 new homes were sold during the 12 months that ended in November, down from 199 for the year that ended in October.
As a percentage of overall housing closings, new home closings represented 3.2% of overall housing closings. A year earlier, new home closings accounted for 4.0% of total closings. Following a year-over-year decline in October, closings of new and existing homes also dropped year-over-year in November.
Pricing and Mortgage Trends
Average price of newly sold homes had a 11.2% gain year-over-year to $416,007 per unit in November. This surge is an improvement over the 4.3% rise 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. Average mortgage size jumped 31.1% to $352,889 in November from a year earlier. Average mortgage size sank 2.1% in October 2015 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 November 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
Foreclosures and real estate owned (REO) closings increased in November from a year earlier and did not look to be a burden on the market. Together, foreclosures plus REO closings made up 22.7% of existing home closings, up from 19.8% a year earlier. The percentage of existing home closings involving foreclosures went from 10.2% in November 2014 to 10.7% in November 2015 and REO closings as a percentage of existing home closings jumped to 12.0% from 9.6%.