New home closings declined year-over-year in April in the Springfield, MO market, and there were signals of weakening market conditions with a percentage decline steeper than that of March 2016. There was a 53.7% fall in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 42.4% decline year-over-year in March.
A total of 295 new homes were sold during the 12 months that ended in April, down from 317 for the year that ended in March.
New home closings accounted for 2.2% of overall housing closings. This is down from the 4.8% of closings a year earlier. New and existing home closings gained in April after a remaining level in March from a year earlier.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes rose year-over-year to $227,151 in April, up 7.3% from last year. This lift compares to a 9.7% drop in March from a year earlier.
For newly sold homes, the average mortgage size saw a bump year-over-year along with new home prices. In April 2016, the average mortgage size was $194,514, a 6.9% hike from a year earlier. Average mortgage size slid 6.0% in March 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 April 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes dropped 35.9% year-over-year to 1,357 square feet in April 2016. The average size of newly sold homes moved from 1,917 square feet in March 2015 to 1,655 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 10.6% of existing closings, lower than 13.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.3% in April from 7.8% a year earlier and REO closings moved from 6.1% of existing home closings in April 2015 to 6.3% in April 2016.