Closings of new homes dropped year-over-year in September in the Fargo, ND market, but the percentage fall, which was less steep than in August 2015, seemed to be suggesting market improvement. Closings declined 60.9% from a year earlier to 25. This came on the heels of a 64.7% decline year-over-year in August.
A total of 414 new homes were sold during the 12 months that ended in September, down from 453 for the year that ended in August.
New home closings accounted for 5.6% of overall housing closings. This is a drop 14.0% of closings a year earlier. For new and existing homes, closings sank in September after also declining in August year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 14.6% gain year-over-year in September to $356,439 per unit. This surge is smaller than the 30.8% lift in August year-over-year.
For newly sold homes, average mortgage size moved from $255,136 in September 2014 to $257,312 in September 2015. Average mortgage size increased 18.0% in August 2015 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 September 2015. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
There was a 72.3% gain year-over-year in the average unit size of newly sold homes to 3,464 square feet in September 2015. In August, the average size of new homes sold went from 1,903 square feet a year earlier to 1,749 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 4.3% of existing home closings, down from 9.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.4% in September from 6.6% a year earlier while REO closings as a percentage of existing home closings dropped to 1.9% from 3.1% a year earlier.