In June, closings of new homes in the Madison, WI market increased year-over-year, on an upswing after a fall in May 2016. New home closings saw a hike of 5.9% from the year earlier to 54. This came on the heels of a 9.6% decline year-over-year in May.
A total of 434 new homes were sold during the 12 months that ended in June, up from 431 for the year that ended in May.
Of the total number of closings, new home closings made up 3.5%. A year ago, 3.3% of total closings were new home closings. Following a year-over-year increase in May, closings of new and existing homes sank year-over-year in June.
Pricing and Mortgage Trends
In June, the average per-unit price of new homes dropped by 14.9% year-over-year to $287,106. This fall is larger than the 4.4% drop in May from a year earlier.
Average mortgage size on new homes dropped year-over-year in contrast to new home prices. Average mortgage size declined 6.9% to $275,174 in June from a year earlier. In May 2016, average mortgage size on newly sold homes saw a 7.1% drop from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. Attached unit closings grew from 7.8% of all closings in June 2015 to 33.3% of closings in June 2016. At the same time, the share belonging to single-family homes slid to 66.7% of closings from 92.2% of closings.
There was a 33.8% gain year-over-year in the average unit size of newly sold homes to 2,724 square feet in June 2016. The average size of newly sold homes moved from 1,857 square feet in May 2015 to 1,641 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 4.0% of existing closings, lower than 6.1% a year earlier. The percentage of existing home closings involving foreclosures dropped to 1.1% in June from 2.2% a year earlier and REO closings moved from 3.9% of existing home closings in June 2015 to 2.9% in June 2016.