In the Milwaukee, WI market, new home closings slid year-over-year in March, curving down after an increase in February 2016. Closings declined 31.8% from a year earlier to 30. This followed a 3.6% hike year-over-year in February.
A total of 463 new homes were sold during the 12 months that ended in March, down from 477 for the year that ended in February.
As a percentage of overall housing closings, new home closings represented 1.6% of overall housing closings. A year ago, 2.2% of total closings were new home closings. Following a year-over-year increase in February, closings of new and existing homes fell year-over-year in March.
Pricing and Mortgage Trends
In March, the average price of newly sold homes jumped 1.4% year-over-year to $353,252 per unit. This rise is smaller than the 8.9% boost in February year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. It slid 1.8% in March from a year earlier, reaching $308,496. In February 2016, average mortgage size sank 5.3% 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. The share of new home closings belonging to single-family homes jumped from 70.5% in March 2015 to 83.3% of closings in March 2016. At the same time, the share of new home closings belonging to attached units fell to 16.7% of closings from 29.5% of closings.
For all new homes sold, the average unit size declined 22.2% year-over-year to 1,538 square feet in March 2016.
Foreclosures and real estate owned (REO) closings declined in March from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings represented 26.5% of existing home closings, down from 27.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 12.0% in March from 10.1% a year earlier while REO closings as a percentage of existing home closings slid to 14.5% from 17.4% a year earlier.