In June, the Reno, NV market saw a fall year-over-year in new home closings, and the percentage fall was steeper than May 2016, suggesting the market may be worsening. There was a 21.3% drop in new home closings from a year earlier. This came on the heels of a 7.5% fall year-over-year in May.
A total of 1,415 new homes were sold during the 12 months that ended in June, down from 1,447 for the year that ended in May.
As a percentage of overall housing closings, new home closings accounted for 12.3%. This is a decline 13.6% of closings a year earlier. Following a year-over-year increase in May, closings of new and existing homes sank year-over-year in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes gained year-over-year to $412,446 per unit, a 12.9% surge. This gain is higher than the 10.2% lift in May year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. Average mortgage size grew 2.0% to $308,474 in June from a year earlier. In May 2016, average mortgage size on newly sold homes saw a 6.1% bump 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. Single-family home closings gained from 94.0% of new closings in June 2015 to 98.3% of closings in June 2016. At the same time, the share of new home closings belonging to attached units dropped to 1.7% of closings from 6.0% of closings.
For all new homes sold, the average unit size climbed 3.9% year-over-year to 2,282 square feet in June 2016. An increase was also seen in May 2016 when the average size of new homes sold grew 3.4% to 2,353 square feet. The average size of newly sold homes moved from 2,275 square feet in May 2015 to 2,353 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 8.2% of closings, below 12.0% a year earlier. The percentage of existing home closings involving foreclosures slid to 4.3% in June from 6.5% a year earlier while REO closings as a percentage of existing home closings fell to 3.9% from 5.5% a year earlier.