In the Reno, NV market in September, closings of new homes dropped year-over-year, moving downward after a hike in August 2015. New home closings saw a drop of 23.6% from the year earlier to 94. In comparison, new home closings in the same month last year saw a 28.0% jump year-over-year in August.
A total of 1,380 new homes were sold during the 12 months that ended in September, down from 1,409 for the year that ended in August.
As a percentage of overall housing closings, new home closings accounted for 10.4%. This is a decline 13.3% of closings a year earlier. Following a year-over-year rise in August, closings of new and existing homes sank year-over-year in September.
Pricing and Mortgage Trends
In September, the average price for new home closings was $363,947, a 3.2% drop from last year. This fall compares to a 3.5% gain in August year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. Average mortgage size slid by 5.5% from a year earlier, settling at $266,439 in September. Average mortgage size jumped 1.7% in August 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units rose from 0.8% of closings in September 2014 to 12.8% of closings in September 2015. Conversely, the share belonging to single-family homes sank to 87.2% of closings from 99.2% of closings.
The average unit size of newly sold homes fell 6.4% year-over-year to 2,137 square feet in September 2015. In August, the average size of new homes sold went from 2,366 square feet a year earlier to 2,373 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 13.8% of closings, below 16.9% a year earlier. The percentage of existing home closings involving foreclosures went from 8.0% in September 2014 to 7.0% in September 2015 and REO closings as a percentage of existing home closings slid to 6.8% from 9.0% a year earlier.