In June, there was a fall year-over-year in new home closings in the Minneapolis-St. Paul, MN market, but the percentage drop was not as steep as May 2015, suggesting market improvement. From a year ago to June 2015, new home closings moved from 444 to 441. This followed a 4.1% decline in May from the year earlier.
A total of 4,234 new homes were sold during the 12 months that ended in June, down from 4,237 for the year that ended in May.
New home closings represented 5.4% of overall housing closings. New home closings were 6.2% of overall closings last year. Following a year-over-year increase in May, closings of new and existing homes also jumped year-over-year in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes gained 3.2% year-over-year to $422,370 per unit. This lift is smaller than the 3.8% boost in May year-over-year.
There was a gain year-over-year in the average mortgage size on new homes along with new home prices. The average mortgage size saw a 6.6% bump year-over-year to $351,400 in June. In May 2015, average mortgage size sank 1.2% 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 increased from 79.7% of new closings in June 2014 to 89.1% of closings in June 2015. Meanwhile, attached units as a percentage of all new home closings sank to 10.9% of closings from 20.3% of closings.
For all new homes sold, the average unit size slid 3.4% year-over-year to 2,532 square feet in June 2015. For newly sold homes, an average size decline contrasting with an average price lift was also seen in May 2015 when the average size of newly sold homes declined 3.0% to 2,594 square feet. The average size of newly sold homes moved from 2,675 square feet in May 2014 to 2,594 square feet in May 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 12.2% of existing home closings, down from 19.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.0% in June from 8.3% a year earlier while REO closings as a percentage of existing home closings dropped to 7.1% from 11.1% a year earlier.