Closings of new homes dropped year-over-year in January in the Reno, NV market, and the percentage fall worsened from December 2015, indicating the market may be weakening. There was a 23.8% decline in new home closings from a year earlier. This followed a 15.9% drop year-over-year in December.
A total of 1,438 new homes were sold during the 12 months that ended in January, down from 1,463 for the year that ended in December.
New home closings made up 13.1% of overall housing closings. This is down from the 15.9% of closings a year earlier. For new and existing homes, closings sank in January after also declining in December year-over-year.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year 14.8% in January to $413,731 per unit. This rise is higher than the 7.5% lift in December year-over-year.
Average mortgage size on new homes gained year-over-year along with new home prices. It gained 8.3% in January from a year earlier to $302,257. In December 2015, average mortgage size on newly sold homes saw a 6.1% lift 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 96.2% in January 2015 to all of closings in January 2016. Conversely, the share of new home closings belonging to attached units slid to no part of closings from 3.8% of closings.
There was a 5.0% bump year-over-year in the average unit size of newly sold homes to 2,320 square feet in January 2016. In December, the average size of new homes sold went from 2,276 square feet a year earlier to 2,169 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 17.6% of existing closings, lower than 19.6% a year earlier. The percentage of existing home closings involving foreclosures went from 9.0% in January 2015 to 8.5% in January 2016 and REO closings as a percentage of existing home closings fell to 9.1% from 10.6% a year earlier.