In the Las Vegas, NV market in January, new home closings dropped year-over-year, moving downward after a bump in December 2015. There was a 16.4% drop in new home closings from a year earlier. This came after a 1.4% jump year-over-year in December.
A total of 6,795 new homes were sold during the 12 months that ended in January, down from 6,861 for the year that ended in December.
New home closings represented 10.2% of overall housing closings. A year earlier, new home closings accounted for 10.9% of total closings. Following a year-over-year decline in December, closings of new and existing homes also slid year-over-year in January.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year in January to $351,194 per unit, a rise of 2.8%. This rise is smaller than the 8.1% hike in December year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In January 2016, the average mortgage size on newly sold homes saw a 1.8% surge from a year earlier. In December 2015, average mortgage size on newly sold homes saw a 8.6% gain year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units jumped from 3.2% of closings in January 2015 to 7.1% of closings in January 2016. Meanwhile, single-family home closings as a percentage of all new home closings slid to 92.9% of closings from 96.8% of closings.
For all new homes sold, the average unit size fell 10.7% year-over-year to 2,189 square feet in January 2016. In December, the average size of new homes sold went from 2,363 square feet a year earlier to 2,343 square feet.
Foreclosures and real estate owned (REO) closings declined in January from a year earlier, but remained a drag on the market. Combined, foreclosures plus REO closings made up 29.7% of existing home closings, below 31.3% a year earlier. The percentage of existing home closings involving foreclosures stayed at 15.2% of closings in January from a year earlier while REO closings as a percentage of existing home closings declined to 14.6% from 16.1% a year earlier.