In August, there was a drop year-over-year in new home closings in the Mobile, AL market, moving south after a gain in July 2015. There was a 3.8% decline in new home closings from a year earlier. This came after a 25.0% rise year-over-year in July.
A total of 310 new homes were sold during the 12 months that ended in August, down from 311 for the year that ended in July.
Of the total number of closings, new home closings made up 4.7%. They represented 4.2% of closings a year earlier. Following a year-over-year rise in July, closings of new and existing homes fell year-over-year in August.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes increased year-over-year to $225,739 in August, up 15.3% from last year. This rise compares to a 4.3% fall in July from a year earlier.
Average mortgage size on new homes jumped year-over-year along with new home prices. In August 2015, average mortgage size climbed 18.0% from a year earlier to $199,368. In July 2015, average mortgage size on newly sold homes saw a 5.9% decline from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in August 2015. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
For all new homes sold, the average unit size slid 24.3% year-over-year to 1,368 square feet in August 2015. In July, the average size of new homes sold went from 2,418 square feet a year earlier to 1,300 square feet.
Foreclosures and real estate owned (REO) closings declined in August from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 35.5% of closings, below 40.5% a year earlier. The percentage of existing home closings involving foreclosures declined to 17.5% in August from 18.9% a year earlier while REO closings as a percentage of existing home closings fell to 18.1% from 21.6% a year earlier.