In the Cedar Rapids, IA market in June, closings of new homes slid year-over-year, and the market seemed to be worsening in light of the percentage fall steeper than May 2016. New home closings saw a 36.4% drop from a year earlier to 35. This was after the housing market saw a 24.4% fall year-over-year in May.
A total of 395 new homes were sold during the 12 months that ended in June, down from 415 for the year that ended in May.
As a percentage of overall housing closings, new home closings made up 5.8%. This is down from the 7.8% of closings a year earlier. Closings of new and existing homes sank year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes rose year-over-year 9.1% in June to $253,131 per unit. This bump follows a move from $265,715 per unit to $267,984 from May 2015 to May 2016.
For newly sold homes, the average mortgage size saw a boost year-over-year along with new home prices. In June 2016, there was a 16.4% rise in the average mortgage size, reaching $223,846. In May 2016, average mortgage size declined 7.7% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased from 21.8% of closings in June 2015 to 28.6% of closings in June 2016. Conversely, the share belonging to single-family homes sank to 71.4% of closings from 78.2% of closings.
The average unit size of newly sold homes rose 2.0% year-over-year to 1,560 square feet in June 2016. The average size of newly sold homes moved from 1,695 square feet in May 2015 to 1,590 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 11.2% of closings, below 11.6% a year earlier. The percentage of existing home closings involving foreclosures went from 5.0% in June 2015 to 4.3% in June 2016 and REO closings moved from 6.6% of existing home closings in June 2015 to 6.9% in June 2016.