There was an increase in new home closings in the Milwaukee, WI market in April year-over-year, rising after a fall in March 2016. New home closings saw a 5.1% boost from a year earlier to 41. In comparison, new home closings in the same month last year saw a 31.8% fall year-over-year in March.
A total of 466 new homes were sold during the 12 months that ended in April, up from 464 for the year that ended in March.
New home closings were 1.9% of total number of closings, same as last year. Following a drop in March year-over-year, closings of new and existing homes climbed year-over-year in April.
Pricing and Mortgage Trends
The average price of newly sold homes fell 17.5% year-over-year in April to $281,662 per unit. This fall follows a move from $348,466 per unit to $349,802 from March 2015 to March 2016.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In April 2016, average mortgage size on new homes sold was $257,265, down 12.8% from a year earlier. It went from $314,146 to $313,233 from March 2015 to March 2016.
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. Single-family home closings gained from 64.1% of new closings in April 2015 to 75.6% of closings in April 2016. Conversely, the share of new home closings belonging to attached units fell to 24.4% of closings from 35.9% of closings.
The average unit size of newly sold homes declined 14.9% year-over-year to 1,964 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 19.3% of closings, below 24.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 7.0% in April from 9.6% a year earlier while REO closings as a percentage of existing home closings slid to 12.2% from 14.9% a year earlier.