In May, the Champaign, IL market saw a drop year-over-year in new home closings, but the decline was less than the year-over-year decline in April. New home closings moved from 23 a year earlier to 19 after the figure moved from 13 in April 2015 to 10 in April 2016.
A total of 164 new homes were sold during the 12 months that ended in May, down from 168 for the year that ended in April.
Out of all housing closings, new home closings made up 5.2%. A year ago, new home closings made up 5.4%. After rising year-over-year in April, closings of new and existing homes declined year-over-year in May.
Pricing and Mortgage Trends
Average price of newly sold homes had a 2.9% decline year-over-year to $311,853 per unit in May. This drop compares to a 2.0% gain in April year-over-year.
The average mortgage size on newly sold homes saw a decline year-over-year in contrast to new home prices. In May 2016, the average mortgage size on newly sold homes saw a 8.3% decline from a year earlier. Average mortgage size on new homes went from $266,519 in April 2015 to $246,400 in April 2016.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. The share of new home closings belonging to attached units rose from 4.3% of closings in May 2015 to 10.5% of closings in May 2016. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 89.5% of closings from 95.7% of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 7.2% of closings, below 11.2% a year earlier. The percentage of existing home closings involving foreclosures went from 4.2% in May 2015 to 4.0% in May 2016 and REO closings as a percentage of existing home closings dropped to 3.2% from 6.9% a year earlier.