In the Wichita, KS market in August, closings of new homes dropped year-over-year, and the market seemed to be worsening in light of the percentage decline steeper than July 2015. There was a 12.0% drop in new home closings from a year earlier. This came on the heels of a 3.0% drop year-over-year in July.
A total of 593 new homes were sold during the 12 months that ended in August, down from 599 for the year that ended in July.
Out of all housing closings, new home closings made up 3.6%. They accounted for 4.1% of closings a year earlier. After falling in July from a year earlier, closings of new and existing homes stayed steady in August.
Pricing and Mortgage Trends
In August, there was a 4.5% gain year-over-year in the average price of newly sold homes, reaching $259,214 per unit. This hike compares to a 8.6% drop in July from a year earlier.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. In August 2015, the average mortgage size was $222,687, a 8.0% hike from a year earlier. In July 2015, average mortgage size on newly sold homes saw a 9.3% decline 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 August 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes climbed 17.7% year-over-year to 2,618 square feet in August 2015. The average size of newly sold homes moved from 2,425 square feet in July 2014 to 2,541 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 15.1% of existing home closings, below 16.2% a year earlier. The percentage of existing home closings involving foreclosures went from 7.7% in August 2014 to 7.4% in August 2015 and REO closings moved from 8.5% of existing home closings in August 2014 to 7.6% in August 2015.