In the Fargo, ND market in August, new home closings fell year-over-year, and the decline was by a larger percentage than the July 2015. New home closings moved from 67 a year earlier to 16 after the figure moved from 47 in July 2014 to 13 in July 2015.
A total of 431 new homes were sold during the 12 months that ended in August, down from 482 for the year that ended in July.
Out of all housing closings, new home closings accounted for 4.3%. This is down from the a year earlier when new home closings made up 13.3% of total closings. After rising year-over-year in July, closings of new and existing homes slid year-over-year in August.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year in August to $381,141 per unit, a rise of 31.4%. This bump is smaller than the 45.0% hike in July year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In August 2015, the average mortgage size was $288,827, up 19.0% from a year earlier. Average mortgage size on new homes went from $259,558 in July 2014 to $300,476 in July 2015.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings increased from 98.5% of new closings in August 2014 to all of closings in August 2015. Meanwhile, attached units as a percentage of all new home closings slid to no part of closings from 1.5% of closings.
For all new homes sold, the average unit size dropped 10.7% year-over-year to 1,715 square feet in August 2015. In July, the average size of new homes sold went from 2,102 square feet a year earlier to 2,325 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 2.5% of closings, below 5.7% a year earlier. The percentage of existing home closings involving foreclosures declined to 1.4% in August from 2.8% a year earlier while REO closings as a percentage of existing home closings sank to 1.1% from 3.0% a year earlier.