In the Montgomery, AL market in October, closings of new homes sank year-over-year, and the decline was by a larger percentage than the September 2015. New home closings moved from 31 a year earlier to 5 after the figure moved from 33 in September 2014 to 7 in September 2015.
A total of 217 new homes were sold during the 12 months that ended in October, down from 243 for the year that ended in September.
New home closings represented 5 out of the 245 total closings, which is a smaller percentage than the 31 of 312 total closings a year earlier. Following a year-over-year decline in September, closings of new and existing homes also dropped year-over-year in October.
Pricing and Mortgage Trends
The average price of new homes rose to $278,190 from last year's $263,326. This followed a 14.7% decline in September from a year earlier.
From the year-ago figure of $238,164, the average mortgage size on new homes moved up to $241,170. Average mortgage size on new homes went from $251,069 in September 2014 to $223,367 in September 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in October 2015.
The average unit size of newly sold homes rose from 2,398 square feet a year earlier to 2,427 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in October from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, made up 40.4% of existing home closings, higher than 31.0% a year earlier. The percentage of existing home closings involving foreclosures rose to 17.5% in October from 16.4% a year earlier while REO closings as a percentage of existing home closings climbed to 22.9% from 14.6%.