In the Indianapolis, IN market in October, new home closings dropped year-over-year, and the percentage drop that was steeper than September 2015 gave implications of worsening market conditions. New home closings saw a 10.2% fall from a year earlier to 254. This came after a 10.2% fall year-over-year in September.
A total of 3,073 new homes were sold during the 12 months that ended in October, down from 3,102 for the year that ended in September.
New home closings accounted for 7.4% of overall housing closings. As a part of the whole, new home closings were 8.0% a year earlier. After rising year-over-year in September, closings of new and existing homes sank year-over-year in October.
Pricing and Mortgage Trends
The average price of new homes went from $296,605 in October 2014 to $294,660 in October 2015. This came after a move from $288,055 per unit in September 2014 to $286,346 in September 2015.
In October 2015, average mortgage size on newly sold homes moved from $253,583 to $252,639 from October 2014. Average mortgage size went from $245,918 in September 2014 to $244,559 in September 2015.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 93.6% of new home closings to 94.1% of closings while attached units have gone from 6.4% of closings to 5.9% of closings.
There was a 26.4% drop year-over-year in the average unit size of newly sold homes to 2,193 square feet in October 2015. The average size of newly sold homes moved from 2,977 square feet in September 2014 to 2,609 square feet in September 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in October, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 21.4% of closings, below 23.4% a year earlier. The percentage of existing home closings involving foreclosures went from 10.7% in October 2014 to 11.2% in October 2015 and REO closings as a percentage of existing home closings declined to 10.2% from 12.7% a year earlier.