There was an increase in new home closings in the Minneapolis-St. Paul, MN market in March year-over-year, but the market seemed to be signaling at evening out with a percentage hike less pronounced than February 2016. Closings moved to 374 in March 2016 from 373 a year earlier. This compares with a 7.2% hike in February from the year earlier.
A total of 4,828 new homes were sold during the 12 months that ended in March, up from 4,827 for the year that ended in February.
Of the total number of closings, new home closings made up 7.7%. A year ago, new home closings represented 7.1%. Following a year-over-year rise in February, closings of new and existing homes fell year-over-year in March.
Pricing and Mortgage Trends
The average value of newly sold homes moved to $395,651 in March 2016 from $396,338 in March 2015. This followed a 3.3% fall in February from a year earlier.
The average mortgage size on new homes moved north year-over-year in contrast to new home prices. It grew 2.0% in March from a year earlier to $329,799. In February 2016, average mortgage size on newly sold homes saw a 3.9% decline from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes climbed from 81.2% in March 2015 to 87.4% of closings in March 2016. Conversely, the share of new home closings belonging to attached units declined to 12.6% of closings from 18.8% of closings.
For all new homes sold, the average unit size slid 1.8% year-over-year to 2,663 square feet in March 2016. In February, the average size of new homes sold went from 2,850 square feet a year earlier to 2,694 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 20.5% of existing closings, lower than 24.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 6.8% in March from 10.6% a year earlier and REO closings moved from 13.6% of existing home closings in March 2015 to 13.7% in March 2016.