In November, the Huntsville, AL market saw a decline year-over-year in new home closings, and there were signs the market may be worsening with a percentage decline steeper than that of October 2015. There was a 27.4% decline in new home closings from a year earlier. This was after the housing market saw a 18.8% fall year-over-year in October.
A total of 796 new homes were sold during the 12 months that ended in November, down from 813 for the year that ended in October.
Out of all housing closings, new home closings represented 9.9%. This is a drop 12.2% of closings a year earlier. Closings of new and existing homes saw a fall year-over-year in November after remaining steady in October year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes rose year-over-year 1.3% in November to $240,035 per unit. This boost is smaller than the 14.3% bump in October year-over-year.
In November 2015, average mortgage size on newly sold homes moved from $208,030 to $206,871 from November 2014. Average mortgage size climbed 15.9% in October 2015 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 November 2015. 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 51.1% drop year-over-year in the average unit size of newly sold homes to 1,099 square feet in November 2015. This fall was opposite the price lift, a pattern also seen in October 2015 when the average size of newly sold homes dropped 21.5% to 1,497 square feet. The average size of newly sold homes moved from 1,907 square feet in October 2014 to 1,497 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in November, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 21.8% of existing closings, lower than 27.1% a year earlier. The percentage of existing home closings involving foreclosures slid to 9.6% in November from 13.2% a year earlier while REO closings as a percentage of existing home closings dropped to 12.3% from 13.9% a year earlier.