There was an increase in new home closings in the Mobile, AL market in April year-over-year, but with an increase less steep than that of March 2016, the market seemed to be showing signs of stabilizing. There was a 3.6% climb in new home closings from a year earlier. This came after a 27.9% jump year-over-year in March.
A total of 373 new homes were sold during the 12 months that ended in April, up from 372 for the year that ended in March.
Of the total number of closings, new home closings made up 4.1%. A year ago, new home closings represented 4.3%. New and existing home closings gained in April after a remaining level in March from a year earlier.
Pricing and Mortgage Trends
In April, there was a 10.3% fall year-over-year in the average per-unit price of newly sold homes, settling at $199,773. This decline is a drop off from the 15.7% drop in March from a year earlier.
In April 2016, average mortgage size on new homes went from $186,970 in April 2015 to $187,363 in April 2016. In March 2016, average mortgage size slid 5.0% 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 April 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes increased 53.9% year-over-year to 3,013 square feet in April 2016. In March, the average size of new homes sold went from 2,397 square feet a year earlier to 1,781 square feet.
Foreclosures and real estate owned (REO) closings declined in April from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 32.3% of closings, below 43.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 16.3% in April from 21.5% a year earlier while REO closings as a percentage of existing home closings fell to 15.9% from 22.2% a year earlier.