The Milwaukee, WI market saw a rise in new home closings in December year-over-year, moving north after a fall in November 2015. New home closings saw a climb of 43.8% from the year earlier to 23. This came on the heels of a 32.1% fall year-over-year in November.
A total of 314 new homes were sold during the 12 months that ended in December, up from 307 for the year that ended in November.
New home closings accounted for 1.3% of overall housing closings. A year ago, new home closings accounted for 0.9%. For new and existing homes, closings climbed year-over-year in December after also increasing in November year-over-year.
Pricing and Mortgage Trends
In December, the average value of new homes saw a 22.3% surge year-over-year as it grew to $344,004 per unit. This bump compares to a 13.2% drop in November from a year earlier.
For newly sold homes, the average mortgage size jumped year-over-year along with new home prices. Average mortgage size climbed 59.6% to $331,010 in December from a year earlier. In November 2015, average mortgage size on newly sold homes saw a 1.1% lift year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased from 18.8% of closings in December 2014 to 26.1% of closings in December 2015. At the same time, the share belonging to single-family homes fell to 73.9% of closings from 81.2% of closings.
Foreclosures and real estate owned (REO) closings decreased in December from a year earlier, but remained a drag on the market. Combined, foreclosures plus REO closings accounted for 25.4% of existing home closings, below 28.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.8% in December from 12.2% a year earlier while REO closings as a percentage of existing home closings dropped to 14.5% from 15.9% a year earlier.