New home closings slid year-over-year in September in the Fargo, ND market, but with a percentage fall less steep than August 2015, there are signs the market may be leveling out. New home closings saw a fall of 60.9% from the year earlier to 25. This came on the heels of a 64.7% decline year-over-year in August.
A total of 414 new homes were sold during the 12 months that ended in September, down from 453 for the year that ended in August.
As a percentage of overall housing closings, new home closings represented 5.6%. This is down from the 14.0% of closings a year earlier. For new and existing homes, closings declined in September after also declining in August year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $356,439 per unit in September, up 14.6%from a year earlier. This bump is smaller than the 30.8% lift in August year-over-year.
For newly sold homes, average mortgage size moved from $255,136 in September 2014 to $257,312 in September 2015. In August 2015, average mortgage size on newly sold homes saw a 18.0% boost year-over-year from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in September 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes gained 72.3% year-over-year to 3,464 square feet in September 2015. The average size of newly sold homes moved from 1,903 square feet in August 2014 to 1,749 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 4.3% of existing closings, lower than 9.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 2.4% in September from 6.6% a year earlier while REO closings as a percentage of existing home closings slid to 1.9% from 3.1% a year earlier.