In the Iowa City, IA market in January, new home closings dropped year-over-year, and the decline was by a larger percentage than the December 2015. New home closings moved from 19 a year earlier to 5 after the figure moved from 14 in December 2014 to 11 in December 2015.
A total of 240 new homes were sold during the 12 months that ended in January, down from 254 for the year that ended in December.
Last year, 19 of 155 total closings were new homes, and this percentage saw a decline as new home closings this year made up 5 of the 114 total closings. After rising year-over-year in December, closings of new and existing homes sank year-over-year in January.
Pricing and Mortgage Trends
The average value of newly sold homes in January 2016 was $289,520, down from last year's $310,221. This followed a 46.2% surge in December year-over-year.
Average mortgage size on new homes went from $194,669 a year earlier to $241,570. Average mortgage size on new homes went from $240,729 in December 2014 to $353,194 in December 2015.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
The average unit size of newly sold homes rose from 1,344 square feet a year earlier to 1,619 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 13.8% of closings, below 15.4% a year earlier. The percentage of existing home closings involving foreclosures sank to 7.3% in January from 8.8% a year earlier and REO closings moved from 6.6% of existing home closings in January 2015 to 6.4% in January 2016.