New home closings gained year-over-year in November in the Minneapolis-St. Paul, MN market, bouncing back from a drop in October 2015. New home closings saw a 13.8% rise from a year earlier to 397. In comparison, new home closings in the same month last year saw a 5.1% fall year-over-year in October.
A total of 4,611 new homes were sold during the 12 months that ended in November, up from 4,563 for the year that ended in October.
As a percentage of overall housing closings, new home closings represented 8.9% of overall housing closings. A year ago, 8.0% of total closings were new home closings. Following a year-over-year increase in October, closings of new and existing homes also climbed year-over-year in November.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year 10.4% in November to $424,028 per unit. This rise is better than the 2.7% gain in October 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 November 2015, average mortgage size increased 11.6% from a year earlier to $357,090. In October 2015, average mortgage size on newly sold homes saw a 1.3% boost year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes gained from 83.7% in November 2014 to 86.4% of closings in November 2015. Conversely, the share of new home closings belonging to attached units slid to 13.6% of closings from 16.3% of closings.
There was a 3.7% drop year-over-year in the average unit size of newly sold homes to 2,523 square feet in November 2015. The average size of newly sold homes moved from 2,693 square feet in October 2014 to 2,771 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 18.7% of closings, below 21.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.9% in November from 10.2% a year earlier and REO closings moved from 11.4% of existing home closings in November 2014 to 10.8% in November 2015.