There was an increase in closings of new homes in the Indianapolis, IN market in April year-over-year, but the percentage edged up less than March 2016, suggesting the market may be leveling out. New home closings saw a climb of 5.1% from the year earlier to 226. This came after a 8.1% climb year-over-year in March.
A total of 3,384 new homes were sold during the 12 months that ended in April, up from 3,373 for the year that ended in March.
As a percentage of overall housing closings, new home closings made up 6.5% of overall housing closings. A year ago, 5.9% of total closings were new home closings. For new and existing homes, closings dropped in April after also declining in March year-over-year.
Pricing and Mortgage Trends
The average value of newly sold homes moved to $293,984 in April 2016 from $296,197 in April 2015. This came after a 4.0% hike in March year-over-year.
For newly sold homes, the average mortgage size fell year-over-year in contrast to average price of new homes. Average mortgage size dropped by 2.3% from a year earlier, settling at $247,305 in April. Average mortgage size gained 1.2% in March 2016 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings increased from 90.7% of new closings in April 2015 to 92.5% of closings in April 2016. Meanwhile, attached units as a percentage of all new home closings sank to 7.5% of closings from 9.3% of closings.
The average unit size of newly sold homes climbed 9.3% year-over-year to 3,207 square feet in April 2016. In March, the average size of new homes sold went from 2,955 square feet a year earlier to 2,997 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 19.1% of existing home closings, below 21.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 8.5% in April from 11.2% a year earlier and REO closings moved from 9.8% of existing home closings in April 2015 to 10.5% in April 2016.