The Kansas City, MO market saw a drop in new home closings year-over-year in May, but the percentage fall, which was less steep than in April 2016, seemed to be suggesting market improvement. Closings dropped 32.4% from a year earlier to 209. In comparison, new home closings in the same month last year saw a 35.6% fall year-over-year in April.
A total of 2,344 new homes were sold during the 12 months that ended in May, down from 2,444 for the year that ended in April.
As a percentage of overall housing closings, new home closings represented 4.1%. This is down from the a year earlier when new home closings represented 6.2% of total closings. Closings of new and existing homes gained year-over-year in May following a decline in April year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price moved from $351,822 in May 2015 to $353,789 in May 2016. This came after a move from $346,590 per unit in April 2015 to $343,607 in April 2016.
In May 2016, average mortgage size on newly sold homes moved from $295,731 to $294,472 from May 2015. Average mortgage size sank 1.0% in April 2016 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units increased from 2.3% of closings in May 2015 to 4.3% of closings in May 2016. At the same time, the share belonging to single-family homes sank to 95.7% of closings from 97.7% of closings.
For all new homes sold, the average unit size fell 1.7% year-over-year to 2,306 square feet in May 2016. In April, the average size of new homes sold went from 2,348 square feet a year earlier to 2,404 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 12.8% of existing home closings, below 15.1% a year earlier. The percentage of existing home closings involving foreclosures went from 6.2% in May 2015 to 5.5% in May 2016 and REO closings as a percentage of existing home closings sank to 7.4% from 8.9% a year earlier.