Closings of new homes dropped year-over-year in November in the Louisville, KY market, and there were hints of weakening market conditions with a percentage drop steeper than that of October 2015. New home closings saw a drop of 72.7% from the year earlier to 15. This came on the heels of a 62.5% decline year-over-year in October.
A total of 592 new homes were sold during the 12 months that ended in November, down from 632 for the year that ended in October.
As a percentage of overall housing closings, new home closings represented 1.6%. This is down from the a year earlier when new home closings represented 5.1% of total closings. Following a year-over-year increase in October, closings of new and existing homes fell year-over-year in November.
Pricing and Mortgage Trends
The average price of new homes was $524,645 per unit in November, up 57.0%from a year earlier. This lift compares to a 4.1% drop in October from a year earlier.
For newly sold homes, the average mortgage size grew year-over-year along with new home prices. The average mortgage size saw a 75.4% surge year-over-year to $488,778 in November. Average mortgage size fell 9.3% in October 2015 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings increased from 5.5% of all closings in November 2014 to 26.7% of closings in November 2015. Conversely, the share belonging to single-family homes slid to 73.3% of closings from 94.5% of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 17.7% of existing closings, lower than 20.1% a year earlier. The percentage of existing home closings involving foreclosures went from 8.0% in November 2014 to 7.4% in November 2015 and REO closings as a percentage of existing home closings declined to 10.3% from 12.1% a year earlier.