Closings of new homes declined year-over-year in May in the Louisville, KY market, but compared with April 2016, the percentage decline was less steep, suggesting that the market may be leveling out. New home closings saw a fall of 10.9% from the year earlier to 49. This followed a 43.7% drop year-over-year in April.
A total of 629 new homes were sold during the 12 months that ended in May, down from 635 for the year that ended in April.
Of the total number of closings, new home closings made up 3.2%. As a part of the whole, new home closings were 3.8% a year earlier. For new and existing homes, closings rose year-over-year in May after also increasing in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year in May to $410,491 per unit, a rise of 10.2%. This boost compares to a period of little change in April from a year earlier.
Average mortgage size on new homes grew year-over-year along with new home prices. In May 2016, average mortgage size jumped 7.2% from a year earlier to $290,138. In April 2016, average mortgage size increased 3.3% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes grew from 92.7% in May 2015 to 98.0% of closings in May 2016. Conversely, the share of new home closings belonging to attached units sank to 2.0% of closings from 7.3% of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 16.2% of existing home closings, below 18.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 8.6% in May from 6.8% a year earlier while REO closings as a percentage of existing home closings fell to 7.6% from 11.8% a year earlier.