Closings of new homes in the Madison, WI market slid year-over-year in April, but the percentage decline was an improvement from March 2016, suggesting the market may be evening out. New home closings saw a 23.7% decline from a year earlier to 29. This came on the heels of a 54.1% fall year-over-year in March.
A total of 437 new homes were sold during the 12 months that ended in April, down from 446 for the year that ended in March.
As a percentage of overall housing closings, new home closings made up 2.8% of overall housing closings. New home closings were 3.4% of overall closings last year. After remaining steady in March from a year earlier, closings of new and existing homes dropped year-over-year in April.
Pricing and Mortgage Trends
The average price of new homes was $348,589 per unit in April, up 6.5%from a year earlier. This boost follows a move from $322,141 per unit to $318,926 from March 2015 to March 2016.
The average mortgage size on new homes moved north year-over-year along with new home prices. It grew 5.1% in April from a year earlier to $291,527. In March 2016, average mortgage size declined 7.9% from a year earlier.
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. The share of new home closings belonging to attached units rose from 5.3% of closings in April 2015 to 6.9% of closings in April 2016. At the same time, the share belonging to single-family homes sank to 93.1% of closings from 94.7% of closings.
For all new homes sold, the average unit size declined 7.7% year-over-year to 2,042 square feet in April 2016. In March, the average size of new homes sold went from 2,010 square feet a year earlier to 2,097 square feet.
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. Foreclosures and REO closings, taken together, represented 6.3% of existing closings, lower than 10.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 1.6% in April from 4.6% a year earlier while REO closings as a percentage of existing home closings sank to 4.7% from 6.3% a year earlier.