The Minneapolis-St. Paul, MN market saw a rise in new home closings in February year-over-year, but there were signs of market leveling as the percentage gain was less than January 2016. New home closings saw a jump of 7.2% from the year earlier to 283. This followed a 9.9% climb year-over-year in January.
A total of 4,823 new homes were sold during the 12 months that ended in February, up from 4,804 for the year that ended in January.
Of the total number of closings, new home closings made up 7.7%. They accounted for 7.4% of closings a year earlier. For new and existing homes, closings grew year-over-year in February after also increasing in January year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 3.3% decline year-over-year to $381,248 per unit in February. This drop is a drop off from the 4.5% decline in January from a year earlier.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It slid to $320,209 in February, a 3.9% drop. Average mortgage size sank 1.5% in January 2016 from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 86.4% of new home closings to 86.9% of closings while attached units have gone from 13.6% of closings to 13.1% of closings.
The average unit size of newly sold homes fell 4.2% year-over-year to 2,698 square feet in February 2016. In January, the average size of new homes sold went from 2,843 square feet a year earlier to 2,604 square feet. A decrease in both the average size and price of newly sold homes was also seen in January 2016 when the average size gained 8.4% to 2,604 square feet.
Foreclosures and real estate owned (REO) closings fell in February from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings represented 25.3% of existing home closings, below 28.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 8.9% in February from 12.2% a year earlier and REO closings moved from 16.3% of existing home closings in February 2015 to 16.4% in February 2016.