In the Minneapolis-St. Paul, MN market in April, closings of new homes declined year-over-year, a shift downward off a bump in March 2016. Closings dropped to 359, marking a 13.7% move from a year earlier. This followed a move from 374 in March 2015 to 416 in March 2016.
A total of 4,772 new homes were sold during the 12 months that ended in April, down from 4,829 for the year that ended in March.
New home closings represented 5.9% of overall housing closings. This is a decline 7.0% of closings a year earlier. After dropping in March from a year earlier, closings of new and existing homes jumped year-over-year in April.
Pricing and Mortgage Trends
The average value for new homes sold in April 2016 was $408,013, a move from $406,272 a year earlier. This came after a period of stability in March from a year earlier.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In April 2016, there was a 3.8% surge in the average mortgage size, reaching $337,250. In March 2016, average mortgage size on newly sold homes saw a 2.1% lift 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 climbed from 80.0% of new closings in April 2015 to 82.5% of closings in April 2016. At the same time, the share of new home closings belonging to attached units slid to 17.5% of closings from 20.0% of closings.
There was a 12.7% fall year-over-year in the average unit size of newly sold homes to 2,455 square feet in April 2016. In March, the average size of new homes sold went from 2,712 square feet a year earlier to 2,671 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 14.6% of existing closings, lower than 19.4% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.7% in April from 7.3% a year earlier while REO closings as a percentage of existing home closings fell to 9.9% from 12.1% a year earlier.