Closings of new homes sank year-over-year in May in the Montgomery, AL market, and the decline was by a larger percentage than the April 2016. New home closings moved from 22 a year earlier to 3 after the figure moved from 12 in April 2015 to 5 in April 2016.
A total of 100 new homes were sold during the 12 months that ended in May, down from 119 for the year that ended in April.
New home closings were 6.9% of total closings a year earlier, and this percentage saw a fall as new home closings this year made up 3 of the 333 total closings. Closings of new and existing homes climbed year-over-year in May following a fall in April year-over-year.
Pricing and Mortgage Trends
The average new home price was $235,850, down from $316,161 a year earlier. This came after a 20.3% drop in April from a year earlier.
The average mortgage size moved to $229,683, down from last year's $272,724. Average mortgage size on new homes went from $246,510 in April 2015 to $191,833 in April 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 May 2016.
The average unit size of newly sold homes fell from 2,726 square feet a year earlier to 2,419 square feet.
Foreclosures and real estate owned (REO) closings decreased in May from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 40.6% of closings, below 44.5% a year earlier. The percentage of existing home closings involving foreclosures went from 18.1% in May 2015 to 18.2% in May 2016 and REO closings as a percentage of existing home closings slid to 22.4% from 26.4% a year earlier.