In the Cedar Rapids, IA market in June, closings of new homes sank year-over-year, and the percentage drop that was steeper than May 2016 gave implications of worsening market conditions. New home closings saw a 36.4% decline from a year earlier to 35. This came on the heels of a 24.4% fall year-over-year in May.
A total of 395 new homes were sold during the 12 months that ended in June, down from 415 for the year that ended in May.
Out of all housing closings, new home closings made up 5.8%. This is down from the a year earlier when new home closings represented 7.8% of total closings. For new and existing homes, closings declined in June after also declining in May year-over-year.
Pricing and Mortgage Trends
In June, the average value of new homes saw a 9.1% surge year-over-year as it grew to $253,131 per unit. This gain follows a move from $265,715 per unit to $267,984 from May 2015 to May 2016.
Average mortgage size on new homes gained year-over-year along with new home prices. In June 2016, the average mortgage size on newly sold homes saw a 16.4% boost from a year earlier. In May 2016, average mortgage size on newly sold homes saw a 7.7% fall from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have dipped. Attached unit closings gained from 21.8% of all closings in June 2015 to 28.6% of closings in June 2016. Meanwhile, single-family home closings as a percentage of all new home closings sank to 71.4% of closings from 78.2% of closings.
For all new homes sold, the average unit size increased 2.0% year-over-year to 1,560 square feet in June 2016. The average size of newly sold homes moved from 1,695 square feet in May 2015 to 1,590 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 11.2% of closings, below 11.6% a year earlier. The percentage of existing home closings involving foreclosures went from 5.0% in June 2015 to 4.3% in June 2016 and REO closings moved from 6.6% of existing home closings in June 2015 to 6.9% in June 2016.