In July, there was a decline year-over-year in new home closings in the Billings, MT market, and the decline was by a larger percentage than the June 2016. New home closings moved from 26 a year earlier to 3 after the figure moved from 32 in June 2015 to 6 in June 2016.
A total of 111 new homes were sold during the 12 months that ended in July, down from 134 for the year that ended in June.
New home closings represented 3 out of the 284 total closings, which is a smaller percentage than the 26 of 416 total closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes declined year-over-year in July.
Pricing and Mortgage Trends
The average new home value went from $302,737 last year to $349,661. This followed a 3.3% hike in June year-over-year.
From the year-ago figure of $253,264, the average mortgage size on new homes moved up to $279,729. Average mortgage size on new homes went from $204,733 in June 2015 to $200,145 in June 2016.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
Foreclosures and real estate owned (REO) closings rose in July from a year earlier and did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 5.7% of existing home closings, above 5.1% a year earlier. The percentage of existing home closings involving foreclosures dropped to 1.4% in July from 2.6% a year earlier while REO closings as a percentage of existing home closings grew to 4.3% from 2.6%.