New home closings in the Fort Smith, AR market declined year-over-year in February, falling after remaining level in January from the year earlier. Closings stood at 5 in February after being 14 a year earlier and remaining unchanged at 4 in January from a year earlier.
A total of 106 new homes were sold during the 12 months that ended in February, down from 115 for the year that ended in January.
New home closings represented 5 out of the 269 total closings, which is a smaller percentage than the 14 of 307 total closings a year earlier. Closings of new and existing homes sank year-over-year in February after also falling in January year-over-year.
Pricing and Mortgage Trends
The average price for newly sold homes moved north to $204,190 from $179,708 a year ago. This was on the heels of a 42.6% bump in January year-over-year.
Average mortgage size on new homes increased to $187,438 from $147,427 last year. Average mortgage size on new homes went from $151,808 in January 2015 to $239,261 in January 2016.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
The average unit size of newly sold homes rose from 1,866 square feet a year earlier to 2,487 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in February from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, represented 35.2% of existing home closings, up from 31.4% a year earlier. The percentage of existing home closings involving foreclosures rose to 16.3% in February from 13.3% a year earlier and REO closings moved from 18.1% of existing home closings in February 2015 to 18.9% in February 2016.