In the Reno, NV market, closings of new homes dropped year-over-year in April, and the percentage fall was steeper than March 2016, suggesting the market may be worsening. Closings dropped 17.4% from a year earlier to 100. This came on the heels of a 16.3% decline year-over-year in March.
A total of 1,408 new homes were sold during the 12 months that ended in April, down from 1,429 for the year that ended in March.
Of the total number of closings, new home closings made up 13.1%. New home closings were 12.7% of overall closings last year. Closings of new and existing homes fell year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
In April, there was a 10.9% surge year-over-year in the average price of newly sold homes, reaching $429,771 per unit. This bump is better than the 9.4% boost in March year-over-year.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. In April 2016, there was a 2.2% boost in the average mortgage size, reaching $297,779. Average mortgage size gained 5.1% in March 2016 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have dipped. Attached unit closings climbed from no part of all closings in April 2015 to 1.0% of closings in April 2016. Conversely, the share belonging to single-family homes slid to 99.0% of closings from all of closings.
There was a move in the average unit size of newly sold homes from 2,464 square feet in April 2015 to 2,460 square feet in April 2016. The average size of newly sold homes moved from 2,341 square feet in March 2015 to 2,378 square feet in March 2016. In March 2016, the average size of newly sold homes rose 1.6% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 10.2% of closings, below 11.9% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.4% in April from 6.1% a year earlier while REO closings as a percentage of existing home closings stayed level at 5.9%.