In the Indianapolis, IN market, new home closings rose year-over-year in May, but there were suggestions the market may be leveling out with a percentage surge shallower than April 2016. Closings moved to 273 in May 2016 from 271 a year earlier. This compares with a 5.6% boost in April from the year earlier.
A total of 3,393 new homes were sold during the 12 months that ended in May, up from 3,391 for the year that ended in April.
New home closings represented 7.0% of overall closings, unchanged from a year earlier. Closings of new and existing homes grew year-over-year in May following a fall in April year-over-year.
Pricing and Mortgage Trends
In May, the average price of newly sold homes sank 6.7% year-over-year to $282,494 per unit. This drop is larger than the 2.1% fall in April from a year earlier.
The average mortgage size on newly sold homes saw a decline year-over-year in contrast to new home prices. In May 2016, average mortgage size on new homes sold was $240,039, down 6.0% from a year earlier. Average mortgage size fell 3.6% in April 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 89.7% of new home closings to 90.1% of closings while attached units have gone from 10.3% of closings to 9.9% of closings.
The average unit size of newly sold homes sank 1.9% year-over-year to 3,022 square feet in May 2016. In April, the average size of new homes sold went from 2,973 square feet a year earlier to 3,215 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 13.8% of existing closings, lower than 17.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.5% in May from 8.2% a year earlier and REO closings moved from 9.4% of existing home closings in May 2015 to 10.3% in May 2016.