In the St. Louis, MO market in February, closings of new homes declined year-over-year, and the percentage drop was steeper than January 2016, giving suggestion the market may be worsening. New home closings saw a decline of 87.3% from the year earlier to 20. This was after the housing market saw a 81.6% decline year-over-year in January.
A total of 1,484 new homes were sold during the 12 months that ended in February, down from 1,621 for the year that ended in January.
New home closings represented 0.6% of overall housing closings. This is a decline 4.2% of closings a year earlier. Following a year-over-year increase in January, closings of new and existing homes dropped year-over-year in February.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year 11.9% in February to $347,782 per unit. This surge is smaller than the 55.2% gain in January year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. It jumped 23.9% in February from a year earlier to $310,838. In January 2016, average mortgage size on newly sold homes saw a 45.2% gain year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from 85.4% in February 2015 to 90.0% of closings in February 2016. Meanwhile, attached units as a percentage of all new home closings fell to 10.0% of closings from 14.6% of closings.
There was a move in the average unit size of newly sold homes from 2,229 square feet in February 2015 to 2,217 square feet in February 2016. The average size of newly sold homes moved from 2,135 square feet in January 2015 to 1,807 square feet in January 2016. In January 2016, the average size of newly sold homes dropped 15.4% from the year earlier.
Foreclosures and real estate owned (REO) closings fell in February from a year earlier, but stayed a drag on the market. Foreclosures and REO closings, taken together, made up 26.1% of existing closings, lower than 29.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.8% in February from 13.4% a year earlier and REO closings moved from 16.2% of existing home closings in February 2015 to 15.3% in February 2016.