In the Iowa City, IA market, new home closings fell year-over-year in February, but the decline was less than the year-over-year decline in January. New home closings moved from 14 a year earlier to 9 after the figure moved from 19 in January 2015 to 5 in January 2016.
A total of 235 new homes were sold during the 12 months that ended in February, down from 240 for the year that ended in January.
New home closings were 9 out of the 127 total closings, down on a percentage basis from 14 of 168 a year earlier. For new and existing homes, closings fell in February after also declining in January year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose to $320,411 from last year's $296,471. This was on the heels of a 6.7% drop in January from a year earlier.
From the year-ago figure of $242,768, the average mortgage size on new homes moved up to $279,432. Average mortgage size on new homes went from $194,669 in January 2015 to $241,570 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 fell from 1,804 square feet a year earlier to 1,563 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in February, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 8.5% of existing home closings, below 11.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 2.5% in February from 3.9% a year earlier while REO closings as a percentage of existing home closings sank to 5.9% from 7.1% a year earlier.