In the Madison, WI market in March, closings of new homes sank year-over-year, and there were hints of worsening market conditions as the percentage decline was steeper than February 2016. There was a 54.1% drop in new home closings from a year earlier. This followed a 10.3% fall year-over-year in February.
A total of 446 new homes were sold during the 12 months that ended in March, down from 486 for the year that ended in February.
Out of all housing closings, new home closings represented 4.2%. This is down from the a year earlier when new home closings accounted for 8.6% of total closings. After remaining steady in February from a year earlier, closings of new and existing homes fell year-over-year in March.
Pricing and Mortgage Trends
The average value for new homes sold in March 2016 was $318,926, a move from $322,141 a year earlier. This was on the heels of a 13.1% rise in February year-over-year.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. In March 2016, average mortgage size declined 7.9% from a year earlier to $250,496. Average mortgage size gained 24.0% in February 2016 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 rose from 82.4% of new closings in March 2015 to 85.3% of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings sank to 14.7% of closings from 17.6% of closings.
The average unit size of newly sold homes climbed 4.3% year-over-year to 2,097 square feet in March 2016. The average size of newly sold homes moved from 2,059 square feet in February 2015 to 1,595 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 8.6% of closings, below 15.2% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.6% in March from 7.3% a year earlier while REO closings as a percentage of existing home closings fell to 6.0% from 7.9% a year earlier.