In the Lincoln, NE market, closings of new homes declined year-over-year in April, and there were hints of worsening market conditions as the percentage drop was steeper than March 2016. Closings fell 26.3% from a year earlier to 42. This was after the housing market saw a 9.5% fall year-over-year in March.
A total of 613 new homes were sold during the 12 months that ended in April, down from 628 for the year that ended in March.
As a percentage of overall housing closings, new home closings represented 7.9%. This is down from the 9.5% of closings a year earlier. Closings of new and existing homes fell year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes climbed year-over-year 8.9% in April to $275,240 per unit. This surge follows a move from $266,883 per unit to $265,611 from March 2015 to March 2016.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size rose to $234,593 in April, marking a 7.7% boost compared with a year earlier. In March 2016, average mortgage size on newly sold homes saw a 8.4% lift 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. The share of new home closings belonging to single-family homes jumped from 59.6% in April 2015 to 73.8% of closings in April 2016. Meanwhile, attached units as a percentage of all new home closings declined to 26.2% of closings from 40.4% of closings.
There was a 25.5% gain year-over-year in the average unit size of newly sold homes to 2,006 square feet in April 2016. In March, the average size of new homes sold went from 1,651 square feet a year earlier to 1,759 square feet.
Foreclosures and real estate owned (REO) closings rose in April from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings represented 13.7% of existing home closings, up from 7.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 5.9% in April from 3.3% a year earlier while REO closings as a percentage of existing home closings climbed to 7.8% from 4.6%.