In September, the Huntsville, AL market saw a drop year-over-year in new home closings, shifting downward off a lift in August 2015. Closings slid 9.0% from a year earlier to 71. This came on the heels of a 29.0% climb year-over-year in August.
A total of 828 new homes were sold during the 12 months that ended in September, down from 835 for the year that ended in August.
Out of all housing closings, new home closings represented 10.0%. This is down from the 13.4% of closings a year earlier. Following a year-over-year increase in August, closings of new and existing homes also increased year-over-year in September.
Pricing and Mortgage Trends
The average per-unit value of new homes sank year-over-year to $227,881 in September, a decline of 7.1% from a year earlier. This decline compares to a 2.3% boost in August year-over-year.
The average mortgage size on newly sold homes declined year-over-year in contrast to the average price of new homes. In September 2015, average mortgage size slid 5.2% from a year earlier to $209,957. In August 2015, average mortgage size grew 4.7% 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 September 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
There was a 78.2% gain year-over-year in the average unit size of newly sold homes to 2,906 square feet in September 2015. In August, the average size of new homes sold went from 1,875 square feet a year earlier to 2,717 square feet.
Foreclosures and real estate owned (REO) closings fell in September from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, represented 26.8% of existing closings, lower than 29.2% a year earlier. The percentage of existing home closings involving foreclosures sank to 9.7% in September from 17.3% a year earlier while REO closings as a percentage of existing home closings jumped to 17.1% from 11.9%.