There was an increase in new home closings in the Indianapolis, IN market in January year-over-year, but with an increase less steep than that of December 2015, the market seemed to be showing signs of evening out. There was a 17.0% rise in new home closings from a year earlier. This came after a 17.3% rise year-over-year in December.
A total of 3,324 new homes were sold during the 12 months that ended in January, up from 3,298 for the year that ended in December.
As a percentage of overall housing closings, new home closings made up 7.6%. This marks a rise from 6.5% of total closings a year earlier. After being steady in December from a year earlier, closings of new and existing homes remained level in January.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 1.1% hike year-over-year in January to $305,833 per unit. This hike is smaller than the 4.9% gain in December year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In January 2016, average mortgage size declined 1.0% from a year earlier to $257,616. In December 2015, average mortgage size rose 4.1% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. Attached unit closings increased from 5.2% of all closings in January 2015 to 8.4% of closings in January 2016. Meanwhile, single-family home closings as a percentage of all new home closings sank to 91.6% of closings from 94.8% of closings.
The average unit size of newly sold homes fell 14.5% year-over-year to 2,597 square feet in January 2016. In December, the average size of new homes sold went from 2,966 square feet a year earlier to 3,373 square feet.
Foreclosures and real estate owned (REO) closings fell in January from a year earlier, but remained a drag on the market. Foreclosures and REO closings, taken together, represented 27.3% of existing closings, lower than 32.1% a year earlier. The percentage of existing home closings involving foreclosures dropped to 13.1% in January from 17.0% a year earlier and REO closings moved from 15.0% of existing home closings in January 2015 to 14.2% in January 2016.