In the Champaign, IL market in May, closings of new homes sank year-over-year, but the decline was less than the year-over-year decline in April. New home closings moved from 23 a year earlier to 19 after the figure moved from 13 in April 2015 to 10 in April 2016.
A total of 164 new homes were sold during the 12 months that ended in May, down from 168 for the year that ended in April.
New home closings accounted for 5.2% of overall housing closings. New home closings were 5.4% of overall closings last year. Following a year-over-year rise in April, closings of new and existing homes slid year-over-year in May.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 2.9% decline year-over-year in May to $311,853 per unit. This fall compares to a 2.0% boost in April year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In May 2016, average mortgage size declined 8.3% from a year earlier to $266,066. Average mortgage size on new homes went from $266,519 in April 2015 to $246,400 in April 2016.
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 gained from 4.3% of all closings in May 2015 to 10.5% of closings in May 2016. At the same time, the share belonging to single-family homes slid to 89.5% of closings from 95.7% of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 7.2% of existing closings, lower than 11.2% a year earlier. The percentage of existing home closings involving foreclosures went from 4.2% in May 2015 to 4.0% in May 2016 and REO closings as a percentage of existing home closings dropped to 3.2% from 6.9% a year earlier.