Closings of new homes slid year-over-year in May in the Reno, NV market, and there were suggestions the market may be weakening with a percentage fall steeper than April 2016. New home closings saw a decline of 19.2% from the year earlier to 97. This was after the housing market saw a 10.5% fall year-over-year in April.
A total of 1,414 new homes were sold during the 12 months that ended in May, down from 1,437 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 11.1%. This is a fall 13.1% of closings a year earlier. Following a year-over-year decline in April, closings of new and existing homes also slid year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in May to $420,475 per unit, a rise of 11.8%. This surge is an improvement over the 10.5% boost in April year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In May 2016, the average mortgage size was $317,379, a 6.0% hike from a year earlier. In April 2016, average mortgage size on newly sold homes saw a 3.8% surge year-over-year 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 May 2016. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes grew 23.1% year-over-year to 2,801 square feet in May 2016. The average size of newly sold homes moved from 2,440 square feet in April 2015 to 2,437 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 11.6% of existing home closings, down from 14.1% a year earlier. The percentage of existing home closings involving foreclosures went from 6.4% in May 2015 to 5.9% in May 2016 and REO closings as a percentage of existing home closings dropped to 5.6% from 7.8% a year earlier.