In the Milwaukee, WI market in June, closings of new homes dropped year-over-year, but compared with May 2015, the percentage fall was less steep, suggesting that the market may be stabilizing. There was a 4.0% fall in new home closings from a year earlier. This followed a 26.5% drop year-over-year in May.
A total of 289 new homes were sold during the 12 months that ended in June, down from 290 for the year that ended in May.
As a percentage of total closings, new home closings made up 0.9%, unchanged from a year ago. For new and existing homes, closings slid in June after also declining in May year-over-year.
Pricing and Mortgage Trends
In June, the average price of newly sold homes grew 6.2% year-over-year to $335,950 per unit. This rise is smaller than the 40.0% hike in May year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It slid 6.7% in June from a year earlier, reaching $280,662. Average mortgage size grew 18.4% in May 2015 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings increased from 20.0% of all closings in June 2014 to 33.3% of closings in June 2015. At the same time, the share belonging to single-family homes dropped to 66.7% of closings from 80.0% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 16.0% of existing home closings, below 22.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 6.0% in June from 10.0% a year earlier while REO closings as a percentage of existing home closings declined to 10.0% from 12.5% a year earlier.