In the Minneapolis-St. Paul, MN market in August, new home closings rose year-over-year, and the market seemed to be signaling bolstering with a percentage gain stronger than July 2015. Closings rose 7.7% from a year earlier to 418. In comparison, new home closings in the same month last year saw a 3.3% jump year-over-year in July.
A total of 4,430 new homes were sold during the 12 months that ended in August, up from 4,400 for the year that ended in July.
Of the total number of closings, new home closings made up 6.1%. A year earlier, new home closings represented 6.3% of total closings. Following a year-over-year increase in July, closings of new and existing homes also grew year-over-year in August.
Pricing and Mortgage Trends
In August, there was a 2.8% bump year-over-year in the average price of newly sold homes, reaching $405,297 per unit. This hike compares to a 1.7% fall in July from a year earlier.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. The average mortgage size saw a 3.0% lift year-over-year to $335,423 in August. It went from $326,592 to $329,445 from July 2014 to July 2015.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes rose from 82.0% in August 2014 to 85.6% of closings in August 2015. At the same time, the share of new home closings belonging to attached units declined to 14.4% of closings from 18.0% of closings.
The average unit size of newly sold homes slid 8.6% year-over-year to 2,494 square feet in August 2015. The average size of newly sold homes moved from 2,773 square feet in July 2014 to 2,448 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 13.1% of existing closings, lower than 17.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.5% in August from 7.6% a year earlier while REO closings as a percentage of existing home closings declined to 7.6% from 9.5% a year earlier.