New home closings in the Indianapolis, IN market rose year-over-year in March, and the percentage lift was an improvement from February 2016, suggesting the market may be gaining momentum. New home closings saw a hike of 6.5% from the year earlier to 277. This was after the housing market saw a 4.2% jump year-over-year in February.
A total of 3,369 new homes were sold during the 12 months that ended in March, up from 3,352 for the year that ended in February.
Of 3,271 total closings, 277 were of new homes. This is better than the 7.3% of closings a year earlier. After rising year-over-year in February, closings of new and existing homes dropped year-over-year in March.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year 3.4% in March to $305,787 per unit. This bump is smaller than the 6.1% gain in February year-over-year.
Average mortgage size on new homes went from $255,480 in March 2015 to $257,149 in March 2016. In February 2016, average mortgage size on newly sold homes saw a 4.1% lift year-over-year from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 91.5% of new home closings to 92.4% of closings while attached units have gone from 8.5% of closings to 7.6% of closings.
There was a 3.6% hike year-over-year in the average unit size of newly sold homes to 3,061 square feet in March 2016. In February, the average size of new homes sold went from 2,812 square feet a year earlier to 2,911 square feet. An increase in both the average size and price of newly sold homes was also seen in February 2016 when the average size gained 3.5% to 2,911 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in March, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 21.9% of existing home closings, below 23.9% a year earlier. The percentage of existing home closings involving foreclosures stayed at 10.2% of closings in March from a year earlier while REO closings as a percentage of existing home closings sank to 11.6% from 13.7% a year earlier.