New home closings slid year-over-year in July in the Indianapolis, IN market, moving downward after a bump in June 2015. There was a 7.5% fall in new home closings from a year earlier. This came after a 13.6% climb year-over-year in June.
A total of 3,084 new homes were sold during the 12 months that ended in July, down from 3,105 for the year that ended in June.
Of the total number of closings, new home closings made up 6.5%. New home closings were 6.8% of overall closings last year. Following a year-over-year increase in June, closings of new and existing homes declined year-over-year in July.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 7.1% gain year-over-year in July to $306,324 per unit. This boost is higher than the 1.2% rise in June year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In July 2015, the average mortgage size was $260,433, up 6.4% from a year earlier. In June 2015, average mortgage size rose 1.4% 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 gained from 5.0% of all closings in July 2014 to 6.9% of closings in July 2015. At the same time, the share belonging to single-family homes dropped to 93.1% of closings from 95.0% of closings.
For all new homes sold, the average unit size jumped 15.5% year-over-year to 3,419 square feet in July 2015. An increase was also seen in June 2015 when the average size of new homes sold gained 1.0% to 3,013 square feet. In June, the average size of new homes sold went from 2,983 square feet a year earlier to 3,013 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 18.6% of existing closings, lower than 28.3% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.7% in July from 9.9% a year earlier while REO closings as a percentage of existing home closings fell to 9.9% from 18.4% a year earlier.