In the Lincoln, NE market, new home closings dropped year-over-year in July, but the percentage drop was not as steep as June 2015, suggesting market improvement. New home closings saw a decline of 1.8% from the year earlier to 55. This came after a 26.7% decline year-over-year in June.
A total of 605 new homes were sold during the 12 months that ended in July, down from 606 for the year that ended in June.
As a percentage of overall housing closings, new home closings accounted for 9.0% of overall housing closings. A year ago, 8.5% of total closings were new home closings. Following a year-over-year decline in June, closings of new and existing homes also declined year-over-year in July.
Pricing and Mortgage Trends
In July, the average price of newly sold homes grew year-over-year to $244,317 per unit, a 1.5% gain. This bump is smaller than the 18.6% hike in June year-over-year.
There was a gain year-over-year in the average mortgage size on new homes along with new home prices. The average mortgage size rose to $215,943 in July, marking a 10.5% lift compared with a year earlier. Average mortgage size jumped 7.6% in June 2015 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 increased from 66.1% of new closings in July 2014 to 67.3% of closings in July 2015. Meanwhile, attached units as a percentage of all new home closings slid to 32.7% of closings from 33.9% of closings.
There was a 3.2% bump year-over-year in the average unit size of newly sold homes to 1,981 square feet in July 2015. In June, the average size of new homes sold went from 2,119 square feet a year earlier to 1,993 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 7.0% of existing closings, lower than 9.9% a year earlier. The percentage of existing home closings involving foreclosures went from 3.6% in July 2014 to 2.7% in July 2015 and REO closings as a percentage of existing home closings sank to 4.3% from 6.3% a year earlier.