Closings of new homes in the Milwaukee, WI market dropped year-over-year in August, moving downward after a bump in July 2015. Closings sank 10.7% from a year earlier to 25. This came after a 2.4% boost year-over-year in July.
A total of 314 new homes were sold during the 12 months that ended in August, down from 317 for the year that ended in July.
As a percentage of overall housing closings, new home closings accounted for 1.1% of closings, relatively stable from a year earlier. After rising year-over-year in July, closings of new and existing homes declined year-over-year in August.
Pricing and Mortgage Trends
The average price of new homes fell 5.9% year-over-year in August to $333,925 per unit. This drop compares to a 5.1% boost in July year-over-year.
For newly sold homes, the average mortgage size saw a rise year-over-year in contrast to new home prices. Average mortgage size climbed 10.4% to $303,084 in August from a year earlier. In July 2015, average mortgage size gained 1.9% 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 jumped from 17.9% of closings in August 2014 to 28.0% of closings in August 2015. At the same time, the share belonging to single-family homes dropped to 72.0% of closings from 82.1% of closings.
There was a 22.1% fall year-over-year in the average unit size of newly sold homes to 1,821 square feet in August 2015. In July, the average size of new homes sold went from 1,804 square feet a year earlier to 1,862 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 18.2% of existing closings, lower than 21.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.6% in August from 9.4% a year earlier while REO closings as a percentage of existing home closings slid to 10.6% from 11.8% a year earlier.