In November, there was a fall year-over-year in new home closings in the Kansas City, MO market, and the percentage fall, which was steeper than October 2015, gave hints that the market may be worsening. Closings fell 31.3% from a year earlier to 123. This was after the housing market saw a 27.1% drop year-over-year in October.
A total of 2,431 new homes were sold during the 12 months that ended in November, down from 2,487 for the year that ended in October.
As a percentage of overall housing closings, new home closings represented 3.9%. This is a decline 5.4% of closings a year earlier. Following a period of little movement in October from a year earlier, closings of new and existing homes sank year-over-year in November.
Pricing and Mortgage Trends
Average price of newly sold homes had a 3.8% rise year-over-year to $359,415 per unit in November. This boost is smaller than the 7.2% lift in October year-over-year.
For newly sold homes, the average mortgage size gained year-over-year along with new home prices. The average mortgage size rose to $300,413 in November, marking a 1.5% surge compared with a year earlier. Average mortgage size grew 7.1% in October 2015 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings rose from 93.9% of new closings in November 2014 to 95.1% of closings in November 2015. Conversely, the share of new home closings belonging to attached units fell to 4.9% of closings from 6.1% of closings.
There was a move in the average unit size of newly sold homes from 2,351 square feet in November 2014 to 2,338 square feet in November 2015. In October 2015, the average size of newly sold homes rose 2.5% from the year earlier. The average size of newly sold homes moved from 2,367 square feet in October 2014 to 2,425 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in November, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 20.5% of closings, below 25.4% a year earlier. The percentage of existing home closings involving foreclosures slid to 9.3% in November from 11.9% a year earlier while REO closings as a percentage of existing home closings dropped to 11.2% from 13.5% a year earlier.