In the Madison, WI market, new home closings sank year-over-year in December, but the market seemed to be signaling improvement with a percentage drop less steep than in November 2015. There was a 39.5% fall in new home closings from a year earlier. This came after a 49.0% fall year-over-year in November.
A total of 422 new homes were sold during the 12 months that ended in December, down from 439 for the year that ended in November.
Out of all housing closings, new home closings represented 2.5%. This is down from the 5.0% of closings a year earlier. After dropping in November from a year earlier, closings of new and existing homes gained year-over-year in December.
Pricing and Mortgage Trends
In December, there was a 9.7% surge year-over-year in the average price of newly sold homes, reaching $306,622 per unit. This lift is smaller than the 17.2% hike in November year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It fell 7.7% in December from a year earlier, reaching $243,099. Average mortgage size jumped 2.4% in November 2015 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 74.4% of new closings in December 2014 to all of closings in December 2015. At the same time, the share of new home closings belonging to attached units dropped to no part of closings from 25.6% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 6.2% of closings, below 20.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 1.8% in December from 5.7% a year earlier while REO closings as a percentage of existing home closings declined to 4.4% from 14.9% a year earlier.