The Reno, NV market saw a drop in new home closings year-over-year in March, and the market seemed to be worsening in light of the percentage fall steeper than February 2016. New home closings saw a 23.4% fall from a year earlier to 108. In comparison, new home closings in the same month last year saw a 17.4% decline year-over-year in February.
A total of 1,416 new homes were sold during the 12 months that ended in March, down from 1,449 for the year that ended in February.
New home closings made up 13.4% of overall housing closings. This is down from the 15.8% of closings a year earlier. Following a year-over-year increase in February, closings of new and existing homes dropped year-over-year in March.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year in March to $408,279 per unit, a rise of 9.4%. This bump is smaller than the 16.4% rise in February year-over-year.
The average mortgage size on newly sold homes saw a bump year-over-year along with new home prices. Average mortgage size gained 4.7% to $311,425 in March from a year earlier. In February 2016, average mortgage size increased 9.7% from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from all of new home closings to 99.1% of closings while attached units have gone from no part of closings to 0.9% of closings.
There was a move in the average unit size of newly sold homes from 2,341 square feet in March 2015 to 2,356 square feet in March 2016. In February, the average size of new homes sold went from 2,264 square feet a year earlier to 2,245 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in March, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 13.6% of existing home closings, down from 15.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.1% in March from 7.0% a year earlier and REO closings moved from 8.9% of existing home closings in March 2015 to 8.4% in March 2016.