Closings of new homes in the Iowa City, IA market dropped year-over-year in December, but the decline was less than the year-over-year decline in November. New home closings moved from 14 a year earlier to 11 after the figure moved from 21 in November 2014 to 7 in November 2015.
A total of 254 new homes were sold during the 12 months that ended in December, down from 257 for the year that ended in November.
On a percentage basis, new home closings as a part of total closings decreased to 5.5% from 7.6% a year earlier. Following a fall in November year-over-year, closings of new and existing homes jumped year-over-year in December.
Pricing and Mortgage Trends
The average price of new homes was $432,045, an increase from $295,443 a year earlier. This followed a 13.5% decline in November from a year earlier.
From the year-ago figure of $240,729, the average mortgage size on new homes moved up to $353,194. Average mortgage size on new homes went from $295,901 in November 2014 to $260,052 in November 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 1,719 square feet a year earlier to 2,038 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 11.6% of existing home closings, down from 12.3% a year earlier. The percentage of existing home closings involving foreclosures went from 8.2% in December 2014 to 7.9% in December 2015 and REO closings moved from 4.1% of existing home closings in December 2014 to 3.7% in December 2015.