New home closings climbed year-over-year in November in the Indianapolis, IN market, but with an increase less steep than that of October 2015, the market seemed to be showing signs of stabilizing. Closings climbed 1.5% from a year earlier to 276. This came after a 2.1% jump year-over-year in October.
A total of 3,242 new homes were sold during the 12 months that ended in November, up from 3,238 for the year that ended in October.
As a percentage of overall housing closings, new home closings represented 9.2% of overall housing closings. A year earlier, new home closings accounted for 8.6% of total closings. After rising year-over-year in October, closings of new and existing homes slid year-over-year in November.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year in November to $297,545 per unit, a rise of 6.0%. This gain compares to a 3.5% fall in October from a year earlier.
For newly sold homes, the average mortgage size increased year-over-year along with new home prices. The average mortgage size saw a 4.7% lift year-over-year to $254,784 in November. Average mortgage size sank 2.8% in October 2015 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 93.8% of new home closings to 93.5% of closings while attached units have gone from 6.2% of closings to 6.5% of closings.
For all new homes sold, the average unit size fell 5.9% year-over-year to 2,686 square feet in November 2015. The average size of newly sold homes moved from 2,951 square feet in October 2014 to 2,335 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in November, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 20.4% of existing home closings, down from 23.6% a year earlier. The percentage of existing home closings involving foreclosures went from 10.2% in November 2014 to 9.9% in November 2015 and REO closings as a percentage of existing home closings dropped to 10.5% from 13.4% a year earlier.