In the Milwaukee, WI market in October, closings of new homes sank year-over-year, shifting downward off a lift in September 2015. New home closings saw a decline of 30.8% from the year earlier to 18. This came after a 4.0% boost year-over-year in September.
A total of 315 new homes were sold during the 12 months that ended in October, down from 323 for the year that ended in September.
Out of all housing closings, new home closings accounted for 0.9%. They represented 1.2% of closings a year earlier. Following a year-over-year increase in September, closings of new and existing homes fell year-over-year in October.
Pricing and Mortgage Trends
In October, the average price for new home closings was $305,824, a 1.9% drop from last year. This fall is a drop off from the 2.3% drop in September from a year earlier.
Average mortgage size on new homes grew year-over-year in contrast to new home prices. In October 2015, the average mortgage size was $324,829, a 19.2% boost from a year earlier. Average mortgage size grew 14.1% in September 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have fallen. Attached unit closings rose from 30.8% of all closings in October 2014 to 33.3% of closings in October 2015. At the same time, the share belonging to single-family homes declined to 66.7% of closings from 69.2% of closings.
There was a 32.2% fall year-over-year in the average unit size of newly sold homes to 1,325 square feet in October 2015. The average size of newly sold homes moved from 2,098 square feet in September 2014 to 1,996 square feet in September 2015. A decline was also seen in September 2015 when the average size of new homes sold dropped 4.9% to 1,996 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in October, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 22.4% of existing home closings, below 24.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 9.3% in October from 11.5% a year earlier and REO closings moved from 12.7% of existing home closings in October 2014 to 13.1% in October 2015.