The Bismarck, ND market saw a drop in new home closings year-over-year in May, but the decline was less than the year-over-year decline in April. New home closings moved from 28 a year earlier to 18 after the figure moved from 29 in April 2015 to 10 in April 2016.
A total of 194 new homes were sold during the 12 months that ended in May, down from 204 for the year that ended in April.
As a percentage of overall housing closings, new home closings represented 9.5%. This is a drop 12.3% of closings a year earlier. After rising year-over-year in April, closings of new and existing homes declined year-over-year in May.
Pricing and Mortgage Trends
In May, the average price of newly sold homes rose 19.1% year-over-year to $397,063 per unit. This boost compares to a 7.1% decline in April from a year earlier.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. Average mortgage size rose 26.2% to $343,392 in May from a year earlier. Average mortgage size on new homes went from $250,428 in April 2015 to $258,236 in April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
Foreclosures and real estate owned (REO) closings rose in May from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 1.7% of existing home closings, higher than 1.0% a year earlier. The percentage of existing home closings involving foreclosures went from 1.0% in May 2015 to 1.7% in May 2016 and REO closings as a percentage of existing home closings stayed level at no part.