New home closings in the Fargo, ND market slid year-over-year in May, and the decline was by a larger percentage than the April 2016. New home closings moved from 66 a year earlier to 9 after the figure moved from 48 in April 2015 to 18 in April 2016.
A total of 403 new homes were sold during the 12 months that ended in May, down from 460 for the year that ended in April.
New home closings were 9 out of the 196 total closings, down on a percentage basis from 66 of 542 a year earlier. Closings of new and existing homes fell year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average value of newly sold homes in May 2016 was $312,378, down from last year's $346,107. This followed a move from $318,108 per unit to $317,022 from April 2015 to April 2016.
Average mortgage size on new homes fell from $284,596 to $262,854. In April 2016, average mortgage size grew 12.1% from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016.
The average unit size of newly sold homes fell from 2,128 square feet a year earlier to 988 square feet.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 8.6% of existing home closings, higher than 5.3% a year earlier. The percentage of existing home closings involving foreclosures rose to 4.8% in May from 2.9% a year earlier while REO closings as a percentage of existing home closings rose to 3.7% from 2.3%.