New home closings dropped year-over-year in June in the Mobile, AL market, but compared with May 2016, the percentage decline was less steep, suggesting that the market may be leveling out. New home closings saw a 21.1% drop from a year earlier to 30. This was after the housing market saw a 21.6% drop year-over-year in May.
A total of 358 new homes were sold during the 12 months that ended in June, down from 366 for the year that ended in May.
New home closings represented 4.7% of overall housing closings. As a part of the whole, new home closings were 5.1% a year earlier. Following a year-over-year increase in May, closings of new and existing homes slid year-over-year in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes climbed year-over-year to $218,774 per unit, a 1.5% boost. This surge follows a move from $214,401 per unit in May 2015 to $215,423 in May 2016.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 10.6% lift year-over-year to $214,726 in June. Average mortgage size jumped 2.0% in May 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in June 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
There was a 48.8% decline year-over-year in the average unit size of newly sold homes to 1,186 square feet in June 2016. In May, the average size of new homes sold went from 1,965 square feet a year earlier to 1,453 square feet.
Foreclosures and real estate owned (REO) closings fell in June from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings made up 32.7% of closings, below 33.7% a year earlier. The percentage of existing home closings involving foreclosures went from 15.6% in June 2015 to 16.3% in June 2016 and REO closings as a percentage of existing home closings declined to 16.3% from 18.1% a year earlier.