In the Reno, NV market in July, closings of new homes declined year-over-year, and there were signs the market may be weakening with a percentage decline steeper than June 2016. New home closings saw a decline of 37.2% from the year earlier to 76. In comparison, new home closings in the same month last year saw a 12.7% drop year-over-year in June.
A total of 1,395 new homes were sold during the 12 months that ended in July, down from 1,440 for the year that ended in June.
New home closings made up 7.1% of overall housing closings. This is a decline 12.3% of closings a year earlier. Closings of new and existing homes grew year-over-year in July following a decline in June year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price rose 6.9% year-over-year in July to $444,909 per unit. This bump is smaller than the 11.2% rise in June year-over-year.
There was a boost year-over-year in the average mortgage size on new homes along with new home prices. In July 2016, average mortgage size climbed 4.0% from a year earlier to $338,285. Average mortgage size went from $302,316 in June 2015 to $304,996 in June 2016.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings increased from 94.2% of new closings in July 2015 to 97.4% of closings in July 2016. Conversely, the share of new home closings belonging to attached units declined to 2.6% of closings from 5.8% of closings.
There was a 1.2% gain year-over-year in the average unit size of newly sold homes to 2,419 square feet in July 2016. In June, the average size of new homes sold went from 2,196 square feet a year earlier to 2,273 square feet. An increase was also seen in June 2016 when the average size of new homes sold gained 3.5% to 2,273 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in July from a year earlier and stayed a drag on the market. Foreclosures and REO closings, taken together, made up 31.7% of existing home closings, up from 14.8% a year earlier. The percentage of existing home closings involving foreclosures sank to 2.7% in July from 6.5% a year earlier while REO closings as a percentage of existing home closings increased to 29.0% from 8.4%.