In January, there was a fall year-over-year in new home closings in the Louisville, KY market, and the percentage fall was more severe than December 2015, indicating the market may be worsening. New home closings saw a 70.9% drop from a year earlier to 16. In comparison, new home closings in the same month last year saw a 62.9% drop year-over-year in December.
A total of 510 new homes were sold during the 12 months that ended in January, down from 549 for the year that ended in December.
Out of all housing closings, new home closings accounted for 1.7%. This is down from the 6.0% of closings a year earlier. After new and existing closings gained in December year-over-year, they stayed level in January.
Pricing and Mortgage Trends
In January, there was a 7.1% gain year-over-year in the average price of newly sold homes, reaching $362,834 per unit. This surge is higher than the 5.9% hike in December year-over-year.
For newly sold homes, the average mortgage size increased year-over-year along with new home prices. The average mortgage size rose to $289,323 in January, marking a 15.7% boost compared with a year earlier. In December 2015, average mortgage size climbed 4.5% from a year earlier.
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 share of new home closings belonging to attached units jumped from 5.5% of closings in January 2015 to 12.5% of closings in January 2016. At the same time, the share belonging to single-family homes slid to 87.5% of closings from 94.5% of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 22.5% of existing closings, lower than 27.3% a year earlier. The percentage of existing home closings involving foreclosures went from 12.7% in January 2015 to 12.5% in January 2016 and REO closings as a percentage of existing home closings sank to 10.0% from 14.6% a year earlier.