New home closings in the Louisville, KY market fell year-over-year in December, but with a percentage drop less steep than November 2015, there are signs the market may be leveling out. New home closings saw a decline of 62.9% from the year earlier to 26. This came on the heels of a 72.7% drop year-over-year in November.
A total of 549 new homes were sold during the 12 months that ended in December, down from 593 for the year that ended in November.
As a percentage of overall housing closings, new home closings made up 2.1%. This is down from the a year earlier when new home closings made up 6.6% of total closings. Following a fall in November year-over-year, closings of new and existing homes increased year-over-year in December.
Pricing and Mortgage Trends
In December, the average price of newly sold homes jumped 5.9% year-over-year to $342,555 per unit. This boost is smaller than the 57.0% rise in November year-over-year.
Average mortgage size on new homes climbed year-over-year along with new home prices. It jumped to $268,196 in December, a 4.5% hike. In November 2015, average mortgage size gained 75.4% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. The share of new home closings belonging to attached units rose from 4.3% of closings in December 2014 to 15.4% of closings in December 2015. Meanwhile, single-family home closings as a percentage of all new home closings declined to 84.6% of closings from 95.7% of closings.
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. Combined, foreclosures plus REO closings represented 19.0% of existing home closings, below 23.9% a year earlier. The percentage of existing home closings involving foreclosures went from 10.8% in December 2014 to 10.4% in December 2015 and REO closings as a percentage of existing home closings sank to 8.6% from 13.1% a year earlier.