The Montgomery, AL market saw a drop in new home closings year-over-year in May, and the decline was by a larger percentage than the April 2015. New home closings moved from 20 a year earlier to 2 after the figure moved from 8 in April 2014 to 1 in April 2015.
A total of 151 new homes were sold during the 12 months that ended in May, down from 169 for the year that ended in April.
On a percentage basis, new home closings as a part of total closings decreased to 0.7% from 5.9% a year earlier. Following a year-over-year rise in April, closings of new and existing homes fell year-over-year in May.
Pricing and Mortgage Trends
The average new home price was $342,450, up from $232,318 a year earlier. This was on the heels of a 19.7% boost in April year-over-year.
Average mortgage size on new homes rose from $221,013 to $297,450. Average mortgage size on new homes went from $245,521 in April 2014 to $283,945 in April 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2015.
Foreclosures and real estate owned (REO) closings continued to rise in May from a year earlier and remained a drag on the market. Combined, foreclosures plus REO closings made up 43.9% of existing home closings, above 31.3% a year earlier. The percentage of existing home closings involving foreclosures rose to 17.4% in May from 12.9% a year earlier while REO closings as a percentage of existing home closings grew to 26.5% from 18.5%.