Closings of new homes sank year-over-year in March in the Montgomery, AL market, and the decline was by a larger percentage than the February 2016. New home closings moved from 29 a year earlier to 3 after the figure moved from 16 in February 2015 to 5 in February 2016.
A total of 126 new homes were sold during the 12 months that ended in March, down from 152 for the year that ended in February.
New home closings represented 3 out of the 276 total closings, which is a smaller percentage than the 29 of 309 total closings a year earlier. For new and existing homes, closings sank in March after also declining in February year-over-year.
Pricing and Mortgage Trends
The average per-unit price of new homes was $243,255, compared with $307,971 last year. This was on the heels of a 3.7% rise in February year-over-year.
Average mortgage size on new homes rose from $227,397 to $233,251. Average mortgage size on new homes went from $221,340 in February 2015 to $206,582 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 2,387 square feet a year earlier to 1,824 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in March from a year earlier and stayed a drag on the market. Foreclosures and REO closings, taken together, accounted for 44.0% of existing home closings, higher than 38.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 20.5% in March from 18.6% a year earlier while REO closings as a percentage of existing home closings rose to 23.4% from 19.6%.