In the Huntsville, AL market, new home closings slid year-over-year in March, and the percentage fall was steeper than February 2016, giving suggestion the market may be worsening. Closings dropped 22.4% from a year earlier to 83. This was after the housing market saw a 16.9% decline year-over-year in February.
A total of 1,262 new homes were sold during the 12 months that ended in March, down from 1,286 for the year that ended in February.
New home closings represented 10.3% of overall housing closings. This is down from the a year earlier when new home closings represented 13.4% of total closings. After new and existing closings rose in February year-over-year, they stayed level in March.
Pricing and Mortgage Trends
In March, the average price for new home closings was $264,080, a 1.3% drop from last year. This drop compares to a 1.0% lift in February year-over-year.
In March 2016, average mortgage size on newly sold homes moved from $234,093 to $232,981 from March 2015. In February 2016, average mortgage size climbed 2.6% 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 March 2016. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes went from 2,739 square feet in March 2015 to 2,734 square feet in March 2016. In February 2016, the average size of newly sold homes gained 6.4% from the year earlier. In February, the average size of new homes sold went from 2,728 square feet a year earlier to 2,903 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 22.4% of existing closings, lower than 34.3% a year earlier. The percentage of existing home closings involving foreclosures dropped to 10.2% in March from 17.2% a year earlier while REO closings as a percentage of existing home closings fell to 12.2% from 17.1% a year earlier.