In the Madison, WI market in August, closings of new homes fell year-over-year, but there were suggestions the market may be stabilizing from a percentage decline less than July 2015. New home closings saw a drop of 38.6% from the year earlier to 35. This was after the housing market saw a 50.6% fall year-over-year in July.
A total of 486 new homes were sold during the 12 months that ended in August, down from 508 for the year that ended in July.
As a percentage of overall housing closings, new home closings made up 3.6%. This is a fall 5.6% of closings a year earlier. Following a year-over-year rise in July, closings of new and existing homes fell year-over-year in August.
Pricing and Mortgage Trends
In August, the average value of new homes saw a 15.5% bump year-over-year as it grew to $337,565 per unit. This lift is better than the 8.3% gain in July year-over-year.
Average mortgage size on new homes grew year-over-year along with new home prices. In August 2015, the average mortgage size on newly sold homes saw a 10.1% bump from a year earlier. Average mortgage size jumped 8.4% in July 2015 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings gained from 73.7% of new closings in August 2014 to 82.9% of closings in August 2015. Conversely, the share of new home closings belonging to attached units dropped to 17.1% of closings from 26.3% of closings.
For all new homes sold, the average unit size declined 17.0% year-over-year to 1,612 square feet in August 2015. For newly sold homes, an average size decline contrasting with an average price hike was also seen in July 2015 when the average size of newly sold homes fell 22.5% to 1,528 square feet. In July, the average size of new homes sold went from 1,972 square feet a year earlier to 1,528 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 6.3% of existing home closings, down from 8.8% a year earlier. The percentage of existing home closings involving foreclosures went from 3.4% in August 2014 to 3.2% in August 2015 and REO closings as a percentage of existing home closings sank to 3.0% from 5.3% a year earlier.