In the Madison, WI market in October, new home closings slid year-over-year, but the percentage drop was not as steep as September 2015, giving suggestion that the market may be evening out. New home closings saw a decline of 20.0% from the year earlier to 28. This followed a 41.3% decline year-over-year in September.
A total of 459 new homes were sold during the 12 months that ended in October, down from 466 for the year that ended in September.
Out of all housing closings, new home closings accounted for 3.4%. This is down from the a year earlier when new home closings represented 4.6% of total closings. Closings of new and existing homes increased year-over-year in October following a drop in September year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $346,935 per unit in October, up 6.6%from a year earlier. This gain is smaller than the 11.9% surge in September year-over-year.
The average mortgage size on newly sold homes saw a decline year-over-year in contrast to new home prices. In October 2015, the average mortgage size on newly sold homes saw a 7.2% drop from a year earlier. In September 2015, average mortgage size on newly sold homes saw a 6.1% gain year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes increased from 82.9% in October 2014 to 96.4% of closings in October 2015. Conversely, the share of new home closings belonging to attached units sank to 3.6% of closings from 17.1% of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in October, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 8.8% of closings, below 12.6% a year earlier. The percentage of existing home closings involving foreclosures went from 4.9% in October 2014 to 4.2% in October 2015 and REO closings as a percentage of existing home closings fell to 4.6% from 7.7% a year earlier.