New home closings dropped year-over-year in May in the Las Vegas, NV market, but there were hints the market may be evening out from a percentage drop less than April 2016. Closings declined 2.4% from a year earlier to 525. In comparison, new home closings in the same month last year saw a 19.9% fall year-over-year in April.
A total of 6,651 new homes were sold during the 12 months that ended in May, down from 6,664 for the year that ended in April.
New home closings made up 12.4% of overall housing closings. This is a boost from 9.8% of closings a year earlier. For new and existing homes, closings declined in May after also declining in April year-over-year.
Pricing and Mortgage Trends
In May, the average price of newly sold homes rose year-over-year to $378,931 per unit, a 7.2% gain. This bump follows a move from $362,789 per unit to $359,520 from April 2015 to April 2016.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. It jumped to $316,884 in May, a 7.9% hike. In April 2016, average mortgage size jumped 3.1% 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 97.4% of new home closings to 97.7% of closings while attached units have gone from 2.6% of closings to 2.3% of closings.
There was a 9.5% hike year-over-year in the average unit size of newly sold homes to 2,708 square feet in May 2016. In April, the average size of new homes sold went from 2,476 square feet a year earlier to 2,398 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 19.5% of closings, below 26.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 9.5% in May from 14.5% a year earlier while REO closings as a percentage of existing home closings dropped to 10.0% from 11.8% a year earlier.