In June, there was a decline year-over-year in new home closings in the Bismarck, ND market, and there were suggestions the market may be weakening with a percentage fall steeper than May 2016. New home closings saw a 51.6% fall from a year earlier to 15. This was after the housing market saw a 35.7% drop year-over-year in May.
A total of 178 new homes were sold during the 12 months that ended in June, down from 194 for the year that ended in May.
As a percentage of overall housing closings, new home closings accounted for 5.9%. This is down from the a year earlier when new home closings represented 11.1% of total closings. For new and existing homes, closings sank in June after also declining in May year-over-year.
Pricing and Mortgage Trends
The average price of new homes dropped by 8.7% year-over-year to $346,630 per unit in June. This fall compares to a 19.1% boost in May year-over-year.
Average mortgage size on new homes saw a drop year-over-year in contrast to prices of new homes. In June 2016, there was a 6.8% fall in the average mortgage size on new homes to $291,385. In May 2016, average mortgage size on newly sold homes saw a 26.2% bump year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings climbed from 96.8% of new closings in June 2015 to all of closings in June 2016. At the same time, the share of new home closings belonging to attached units declined to no part of closings from 3.2% of closings.
Foreclosures and real estate owned (REO) closings rose in June from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 4.6% of existing home closings, above 1.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 2.5% in June from 0.4% a year earlier while REO closings as a percentage of existing home closings climbed to 2.1% from 0.8%.