In the Madison, WI market in February, closings of new homes declined year-over-year, but there were suggestions of market improvement with a percentage decline less steep than in January 2016. There was a 10.3% drop in new home closings from a year earlier. This came after a 55.9% decline year-over-year in January.
A total of 486 new homes were sold during the 12 months that ended in February, down from 489 for the year that ended in January.
As a percentage of overall housing closings, new home closings represented 5.1% of overall housing closings. A year ago, new home closings accounted for 5.6%. After rising year-over-year in January, closings of new and existing homes slid year-over-year in February.
Pricing and Mortgage Trends
In February, there was a 13.1% surge year-over-year in the average price of newly sold homes, reaching $349,962 per unit. This lift compares to a 8.5% drop in January from a year earlier.
The average mortgage size on newly sold homes saw a boost year-over-year along with new home prices. Average mortgage size climbed 24.0% to $326,041 in February from a year earlier. It went from $254,562 to $255,436 from January 2015 to January 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. The share of new home closings belonging to single-family homes rose from 86.2% in February 2015 to 88.5% of closings in February 2016. At the same time, the share of new home closings belonging to attached units fell to 11.5% of closings from 13.8% of closings.
For all new homes sold, the average unit size slid 22.5% year-over-year to 1,595 square feet in February 2016. The average size of newly sold homes moved from 1,884 square feet in January 2015 to 1,506 square feet in January 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in February, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 11.9% of existing closings, lower than 17.1% a year earlier. The percentage of existing home closings involving foreclosures went from 7.1% in February 2015 to 6.1% in February 2016 and REO closings as a percentage of existing home closings dropped to 5.7% from 10.0% a year earlier.