New home closings slid year-over-year in October in the Indianapolis, IN market, and the market seemed to be weakening with a percentage decline steeper than in September 2015. There was a 10.2% fall in new home closings from a year earlier. This came after a 10.2% fall year-over-year in September.
A total of 3,073 new homes were sold during the 12 months that ended in October, down from 3,102 for the year that ended in September.
New home closings represented 7.4% of overall housing closings. New home closings were 8.0% of overall closings last year. After rising year-over-year in September, closings of new and existing homes declined year-over-year in October.
Pricing and Mortgage Trends
For newly sold homes, the average price moved from $296,605 in October 2014 to $294,660 in October 2015. This was on the heels of a move from $288,055 per unit in September 2014 to $286,346 in September 2015.
In October 2015, average mortgage size on newly sold homes moved from $253,583 to $252,639 from October 2014. It went from $245,918 to $244,559 from September 2014 to September 2015.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 93.6% of new home closings to 94.1% of closings while attached units have gone from 6.4% of closings to 5.9% of closings.
The average unit size of newly sold homes sank 26.4% year-over-year to 2,193 square feet in October 2015. In September, the average size of new homes sold went from 2,977 square feet a year earlier to 2,609 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in October, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 21.4% of closings, below 23.4% a year earlier. The percentage of existing home closings involving foreclosures went from 10.7% in October 2014 to 11.2% in October 2015 and REO closings as a percentage of existing home closings slid to 10.2% from 12.7% a year earlier.