In the Milwaukee, WI market, new home closings jumped year-over-year in February, but with an increase less steep than that of January 2016, the market seemed to be showing signs of evening out. Closings increased 3.6% from a year earlier to 29. This was after the housing market saw a 25.0% jump year-over-year in January.
A total of 476 new homes were sold during the 12 months that ended in February, up from 475 for the year that ended in January.
New home closings, which made up 2.0% of overall closings, were relatively stable compared with a year earlier. After remaining steady in January from a year earlier, closings of new and existing homes grew in February.
Pricing and Mortgage Trends
For newly sold homes, the average price jumped 8.9% year-over-year in February to $345,290 per unit. This lift is smaller than the 29.3% boost in January year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. It sank to $283,172 in February, a 5.3% fall. Average mortgage size climbed 18.8% in January 2016 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. The share of new home closings belonging to attached units rose from 21.4% of closings in February 2015 to 24.1% of closings in February 2016. Conversely, the share belonging to single-family homes slid to 75.9% of closings from 78.6% of closings.
Foreclosures and real estate owned (REO) closings decreased in February from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings made up 31.0% of closings, below 40.4% a year earlier. The percentage of existing home closings involving foreclosures declined to 14.1% in February from 18.8% a year earlier while REO closings as a percentage of existing home closings sank to 16.9% from 21.6% a year earlier.