In March, there was a fall year-over-year in new home closings in the Fayetteville, AR market, but the decline was less than the year-over-year decline in February. New home closings moved from 97 a year earlier to 10 after the figure moved from 104 in February 2015 to 10 in February 2016.
A total of 465 new homes were sold during the 12 months that ended in March, down from 552 for the year that ended in February.
New home closings represented 10 out of the 743 total closings, which is a smaller percentage than the 97 of 944 total closings a year earlier. Following a year-over-year decline in February, closings of new and existing homes also dropped year-over-year in March.
Pricing and Mortgage Trends
The average per-unit price of new homes was $222,400, compared with $253,651 last year. This followed a 6.6% hike in February year-over-year.
Average mortgage size on new homes fell from $221,304 to $189,694. Average mortgage size on new homes went from $212,698 in February 2015 to $184,388 in February 2016.
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.
The average unit size of newly sold homes fell from 2,372 square feet a year earlier to 2,246 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. Combined, foreclosures plus REO closings accounted for 14.9% of existing home closings, below 17.8% a year earlier. The percentage of existing home closings involving foreclosures went from 6.1% in March 2015 to 5.2% in March 2016 and REO closings as a percentage of existing home closings declined to 9.7% from 11.7% a year earlier.