In December, there was a drop year-over-year in new home closings in the Bismarck, ND market, but the decline was less than the year-over-year decline in November. New home closings moved from 12 a year earlier to 2 after the figure moved from 20 in November 2014 to 1 in November 2015.
A total of 63 new homes were sold during the 12 months that ended in December, down from 73 for the year that ended in November.
On a percentage basis, new home closings as a part of total closings decreased to 1.2% from 6.0% a year earlier. Following a year-over-year decline in November, closings of new and existing homes also fell year-over-year in December.
Pricing and Mortgage Trends
The average value of newly sold homes in December 2015 was $232,900, down from last year's $338,884. This was on the heels of a 47.7% gain in November year-over-year.
There was a decline in average mortgage size on new homes, going from $281,546 last year to $221,255 in December 2015. Average mortgage size on new homes went from $270,084 in November 2014 to $388,000 in November 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in December 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in December, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 1.8% of existing home closings, down from 2.7% a year earlier. The percentage of existing home closings involving foreclosures went from 2.1% in December 2014 to 1.8% in December 2015 and REO closings moved from 0.5% of existing home closings in December 2014 to no part in December 2015.