New home closings dropped year-over-year in November in the Fargo, ND market, and the percentage fall, which was steeper than October 2015, gave signals of weakening market conditions. New home closings saw a drop of 58.5% from the year earlier to 22. This was after the housing market saw a 53.1% decline year-over-year in October.
A total of 509 new homes were sold during the 12 months that ended in November, down from 540 for the year that ended in October.
New home closings represented 7.1% of overall housing closings. This is down from the 13.2% of closings a year earlier. For new and existing homes, closings slid in November after also declining in October year-over-year.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year 12.3% in November to $363,922 per unit. This gain is better than the 10.6% surge in October year-over-year.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. The average mortgage size saw a 14.6% hike year-over-year to $301,341 in November. In October 2015, average mortgage size on newly sold homes saw a 9.4% hike year-over-year 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 climbed from 88.7% of new closings in November 2014 to 95.5% of closings in November 2015. At the same time, the share of new home closings belonging to attached units declined to 4.5% of closings from 11.3% of closings.
There was a 5.1% drop year-over-year in the average unit size of newly sold homes to 1,865 square feet in November 2015. The average size of newly sold homes moved from 2,011 square feet in October 2014 to 2,100 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 3.8% of closings, below 6.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 1.4% in November from 4.0% a year earlier and REO closings moved from 2.9% of existing home closings in November 2014 to 2.4% in November 2015.