New home closings in the Las Vegas, NV market dropped year-over-year in April, and there were signs the market may be weakening with a percentage drop steeper than March 2016. New home closings saw a 35.5% decline from a year earlier to 340. This came on the heels of a 14.4% decline year-over-year in March.
A total of 6,571 new homes were sold during the 12 months that ended in April, down from 6,758 for the year that ended in March.
Out of all housing closings, new home closings made up 9.1%. This is a drop 10.7% of closings a year earlier. Closings of new and existing homes fell year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
The average price of new homes went from $362,579 in April 2015 to $360,844 in April 2016. This followed a 8.7% bump in March year-over-year.
The average mortgage size on new homes moved north year-over-year in contrast to new home prices. In April 2016, the average mortgage size on newly sold homes saw a 2.5% hike from a year earlier. Average mortgage size rose 6.3% in March 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 97.0% of new home closings to 97.4% of closings while attached units have gone from 3.0% of closings to 2.6% of closings.
There was a 1.6% decline year-over-year in the average unit size of newly sold homes to 2,434 square feet in April 2016. In March, the average size of new homes sold went from 2,432 square feet a year earlier to 2,429 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 21.2% of existing closings, lower than 24.6% a year earlier. The percentage of existing home closings involving foreclosures went from 11.5% in April 2015 to 10.6% in April 2016 and REO closings as a percentage of existing home closings fell to 10.5% from 13.1% a year earlier.