In January, there was a decline year-over-year in new home closings in the Madison, WI market, and the decline was by a larger percentage than the December 2015. New home closings moved from 30 a year earlier to 13 after the figure moved from 43 in December 2014 to 26 in December 2015.
A total of 405 new homes were sold during the 12 months that ended in January, down from 422 for the year that ended in December.
New home closings represented 13 out of the 502 total closings, which is a smaller percentage than the 30 of 476 total closings a year earlier. For new and existing homes, closings climbed year-over-year in January after also increasing in December year-over-year.
Pricing and Mortgage Trends
The average value of newly sold homes in January 2016 was $291,226, down from last year's $299,822. This followed a 9.7% boost in December year-over-year.
There was no change in average mortgage size on new homes, as it remained steady at $254,441. Average mortgage size dropped 7.7% in December 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.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 14.1% of existing home closings, down from 17.7% a year earlier. The percentage of existing home closings involving foreclosures went from 7.6% in January 2015 to 7.8% in January 2016 and REO closings as a percentage of existing home closings sank to 6.3% from 10.1% a year earlier.