Closings of new homes in the Billings, MT market dropped year-over-year in May, and the decline was by a larger percentage than the April 2016. New home closings moved from 32 a year earlier to 7 after the figure moved from 24 in April 2015 to 10 in April 2016.
A total of 154 new homes were sold during the 12 months that ended in May, down from 179 for the year that ended in April.
On a percentage basis, new home closings as a part of total closings decreased to 2.1% from 10.4% a year earlier. After dropping in April from a year earlier, closings of new and existing homes rose year-over-year in May.
Pricing and Mortgage Trends
The average per-unit price of new homes was $246,436, compared with $287,781 last year. This came after a 26.3% drop in April from a year earlier.
The average mortgage size went down to $213,888 from $245,350 a year earlier. Average mortgage size on new homes went from $235,823 in April 2015 to $171,824 in April 2016.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
Foreclosures and real estate owned (REO) closings rose in May from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings represented 6.8% of existing home closings, up from 6.5% a year earlier. The percentage of existing home closings involving foreclosures went from 3.6% in May 2015 to 3.1% in May 2016 and REO closings moved from 2.9% of existing home closings in May 2015 to 3.7% in May 2016.