New home closings in the Fargo, ND market fell year-over-year in April, and the percentage drop worsened from March 2016, indicating the market may be weakening. Closings slumped 60.4% from a year earlier to 19. This was after the housing market saw a 59.2% drop year-over-year in March.
A total of 461 new homes were sold during the 12 months that ended in April, down from 490 for the year that ended in March.
Out of all housing closings, new home closings accounted for 6.4%. This is down from the 12.9% of closings a year earlier. For new and existing homes, closings dropped in April after also declining in March year-over-year.
Pricing and Mortgage Trends
In April, the average price of newly sold homes dropped year-over-year to $298,717 per unit, marking a 6.1% drop from the year-earlier figure. This drop compares to a 19.1% lift in March year-over-year.
There was a surge year-over-year in the average mortgage size on new homes in contrast to new home prices. In April 2016, the average mortgage size was $280,911, up 10.5% from a year earlier. In March 2016, average mortgage size rose 12.5% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings grew from 93.8% of new closings in April 2015 to all of closings in April 2016. Conversely, the share of new home closings belonging to attached units declined to no part of closings from 6.2% of closings.
For all new homes sold, the average unit size rose 46.4% year-over-year to 2,732 square feet in April 2016. In March, the average size of new homes sold went from 1,779 square feet a year earlier to 2,005 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 4.3% of existing home closings, down from 6.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 1.4% in April from 3.7% a year earlier and REO closings moved from 3.1% of existing home closings in April 2015 to 2.9% in April 2016.