In the Lincoln, NE market in June, new home closings jumped year-over-year, moving north after a fall in May 2016. There was a 14.5% climb in new home closings from a year earlier. This came on the heels of a 25.7% decline year-over-year in May.
A total of 611 new homes were sold during the 12 months that ended in June, up from 603 for the year that ended in May.
Of 639 total closings, 63 were of new homes. This is an increase on a percentage basis, as new home closings were 8.2% of total closings a year ago. Closings of new and existing homes slid year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
The average price of new homes dropped 5.6% year-over-year in June to $281,048 per unit. This decline compares to a 15.7% gain in May year-over-year.
The average mortgage size on newly sold homes grew year-over-year in contrast to the average price of new homes. In June 2016, average mortgage size climbed 5.3% from a year earlier to $235,107. In May 2016, average mortgage size on newly sold homes saw a 9.9% bump year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings grew from 76.4% of new closings in June 2015 to 79.4% of closings in June 2016. At the same time, the share of new home closings belonging to attached units slid to 20.6% of closings from 23.6% of closings.
For all new homes sold, the average unit size rose 12.7% year-over-year to 1,836 square feet in June 2016. The average size of newly sold homes moved from 1,678 square feet in May 2015 to 1,546 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 6.8% of existing home closings, below 9.4% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.1% in June from 4.4% a year earlier while REO closings as a percentage of existing home closings sank to 3.6% from 5.0% a year earlier.