In the Lincoln, NE market in May, new home closings slid year-over-year, and the percentage drop, which was steeper than April 2016, gave signals that the market may be worsening. New home closings saw a 41.9% drop from a year earlier to 43. In comparison, new home closings in the same month last year saw a 26.3% fall year-over-year in April.
A total of 583 new homes were sold during the 12 months that ended in May, down from 614 for the year that ended in April.
New home closings represented 6.9% of overall housing closings. This is a decline 10.0% of closings a year earlier. Following a year-over-year decline in April, closings of new and existing homes also sank year-over-year in May.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes rose year-over-year to $291,930 in May, up 12.8% from last year. This lift is better than the 8.9% surge in April year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. In May 2016, there was a 5.9% boost in the average mortgage size, reaching $242,682. Average mortgage size climbed 7.7% in April 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings increased from 68.9% of new closings in May 2015 to 86.0% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings declined to 14.0% of closings from 31.1% of closings.
There was a 7.9% fall year-over-year in the average unit size of newly sold homes to 1,546 square feet in May 2016. In April, the average size of new homes sold went from 1,598 square feet a year earlier to 2,006 square feet.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 7.5% of existing home closings, up from 7.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 4.1% in May from 2.8% a year earlier and REO closings moved from 4.3% of existing home closings in May 2015 to 3.4% in May 2016.