In the St. Louis, MO market in June, new home closings sank year-over-year, and there were signs of worsening market conditions as the percentage fall was steeper than May 2016. Closings fell 78.8% from a year earlier to 48. This came after a 75.5% fall year-over-year in May.
A total of 991 new homes were sold during the 12 months that ended in June, down from 1,169 for the year that ended in May.
Out of all housing closings, new home closings made up 0.8%. This is a decline 3.6% of closings a year earlier. Closings of new and existing homes dropped year-over-year in June after remaning steady in May year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 21.8% rise year-over-year to $390,103 per unit in June. This boost is smaller than the 44.7% surge in May year-over-year.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. In June 2016, the average mortgage size was $287,935, a 9.7% lift from a year earlier. In May 2016, average mortgage size rose 27.2% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings increased from 88.9% of new closings in June 2015 to 93.8% of closings in June 2016. Meanwhile, attached units as a percentage of all new home closings declined to 6.2% of closings from 11.1% of closings.
For all new homes sold, the average unit size fell 16.8% year-over-year to 1,876 square feet in June 2016. In May, the average size of new homes sold went from 2,204 square feet a year earlier to 2,641 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 15.4% of existing home closings, below 19.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 7.7% in June from 9.4% a year earlier while REO closings as a percentage of existing home closings dropped to 7.7% from 10.5% a year earlier.