There was an increase in closings of new homes in the Ames, IA market in June year-over-year, and the increase was greater than May 2016. New home closings moved from 13 a year earlier to 17 after the figure moved from 9 in May 2015 to 10 in May 2016.
A total of 118 new homes were sold during the 12 months that ended in June, up from 114 for the year that ended in May.
New home closings were 17 out of 206 total closings, making up 8.3%. This is up on a percentage basis from 13 of 206 a year earlier. After increasing in May from a year earlier, closings of new and existing homes remained level in June.
Pricing and Mortgage Trends
The average new home price was $250,412, down from $293,500 a year earlier. This was on the heels of a 25.5% decline in May from a year earlier.
The average mortgage size went down to $228,538 from $259,545 a year earlier. Average mortgage size on new homes went from $320,821 in May 2015 to $248,443 in May 2016.
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 fell from 1,504 square feet a year earlier to 1,092 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 2.6% of closings, below 6.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 0.5% in June from 2.6% a year earlier while REO closings as a percentage of existing home closings slid to 2.1% from 3.6% a year earlier.