New home closings climbed year-over-year in December in the Indianapolis, IN market, and with a stronger hike in comparison with November 2015, the market seems to be strengthening. Closings increased 17.0% from a year earlier to 351. This followed a 1.5% climb year-over-year in November.
A total of 3,293 new homes were sold during the 12 months that ended in December, up from 3,242 for the year that ended in November.
Out of all housing closings, new home closings represented 10.5%. This marks a rise from 8.9% of total closings a year earlier. Closings of new and existing homes stayed level after declining in November year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes grew year-over-year to $313,717 in December, up 5.0% from last year. This boost is smaller than the 6.0% lift in November year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size rose to $263,543 in December, marking a 4.3% gain compared with a year earlier. In November 2015, average mortgage size on newly sold homes saw a 4.7% bump year-over-year from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units increased from 4.7% of closings in December 2014 to 8.0% of closings in December 2015. Conversely, the share belonging to single-family homes sank to 92.0% of closings from 95.3% of closings.
There was a 13.7% hike year-over-year in the average unit size of newly sold homes to 3,373 square feet in December 2015. The average size of newly sold homes moved from 2,853 square feet in November 2014 to 2,686 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 21.0% of existing home closings, down from 22.0% a year earlier. The percentage of existing home closings involving foreclosures went from 9.5% in December 2014 to 9.1% in December 2015 and REO closings moved from 12.5% of existing home closings in December 2014 to 11.8% in December 2015.