In April, the Huntsville, AL market saw a fall year-over-year in new home closings, and there were hints the market may be weakening with a percentage drop steeper than March 2016. New home closings saw a fall of 32.2% from the year earlier to 80. In comparison, new home closings in the same month last year saw a 21.5% drop year-over-year in March.
A total of 1,227 new homes were sold during the 12 months that ended in April, down from 1,265 for the year that ended in March.
Out of all housing closings, new home closings represented 9.9%. This is down from the a year earlier when new home closings made up 15.0% of total closings. For new and existing homes, closings rose year-over-year in April after also increasing in March year-over-year.
Pricing and Mortgage Trends
In April, the average value of new homes saw a 12.1% boost year-over-year as it grew to $269,951 per unit. This surge follows a move from $267,658 per unit to $265,093 from March 2015 to March 2016.
For newly sold homes, the average mortgage size saw a gain year-over-year along with new home prices. In April 2016, the average mortgage size was $235,686, up 6.4% from a year earlier. In March 2016, average mortgage size remained level from a year earlier at $234,093.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in April 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes declined 2.7% year-over-year to 2,521 square feet in April 2016. The average size of newly sold homes moved from 2,739 square feet in March 2015 to 2,734 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 22.2% of closings, below 28.4% a year earlier. The percentage of existing home closings involving foreclosures dropped to 10.1% in April from 13.3% a year earlier while REO closings as a percentage of existing home closings sank to 12.1% from 15.1% a year earlier.