Closings of new homes in the Appleton, WI market dropped year-over-year in September, but there were signals of market improvement with a percentage drop less steep than in August 2015. New home closings saw a 21.1% drop from a year earlier to 15. This was after the housing market saw a 25.0% drop year-over-year in August.
A total of 177 new homes were sold during the 12 months that ended in September, down from 181 for the year that ended in August.
As a percentage of overall housing closings, new home closings accounted for 3.8% of overall housing closings. A year ago, 4.5% of total closings were new home closings. Closings of new and existing homes sank year-over-year in September after also falling in August year-over-year.
Pricing and Mortgage Trends
In September, the average price for new home closings was $247,813, a 15.5% drop from last year. This decline compares to a 35.1% bump in August year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It sank 5.6% in September from a year earlier to $209,951. In August 2015, average mortgage size on newly sold homes saw a 27.6% gain year-over-year from a year earlier.
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 climbed from 73.7% of new closings in September 2014 to 80.0% of closings in September 2015. At the same time, the share of new home closings belonging to attached units declined to 20.0% of closings from 26.3% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 12.9% of existing home closings, down from 16.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 6.1% in September from 9.5% a year earlier and REO closings moved from 6.7% of existing home closings in September 2014 to 6.8% in September 2015.