New home closings in the Madison, WI market declined year-over-year in March, and the percentage fall was steeper than February 2016, giving suggestion the market may be worsening. Closings dropped 54.1% from a year earlier to 34. This followed a 10.3% drop year-over-year in February.
A total of 446 new homes were sold during the 12 months that ended in March, down from 486 for the year that ended in February.
New home closings accounted for 4.2% of overall housing closings. This is down from the a year earlier when new home closings made up 8.6% of total closings. After remaining steady in February from a year earlier, closings of new and existing homes fell year-over-year in March.
Pricing and Mortgage Trends
The average value for new homes sold in March 2016 was $318,926, a move from $322,141 a year earlier. This followed a 13.1% hike in February year-over-year.
For newly sold homes, the average mortgage size saw a drop year-over-year in contrast to new home prices. It slid 7.9% in March from a year earlier to $250,496. In February 2016, average mortgage size climbed 24.0% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings gained from 82.4% of new closings in March 2015 to 85.3% of closings in March 2016. At the same time, the share of new home closings belonging to attached units sank to 14.7% of closings from 17.6% of closings.
The average unit size of newly sold homes grew 4.3% year-over-year to 2,097 square feet in March 2016. In February, the average size of new homes sold went from 2,059 square feet a year earlier to 1,595 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. Foreclosures and REO closings, taken together, made up 8.6% of existing closings, lower than 15.2% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.6% in March from 7.3% a year earlier while REO closings as a percentage of existing home closings fell to 6.0% from 7.9% a year earlier.