There was an increase in new home closings in the Minneapolis-St. Paul, MN market in July year-over-year, swinging upward year-over-year after little movement in June. Closings increased 2.1% from a year earlier to 431. Closings were steady in June from the year earlier.
A total of 4,344 new homes were sold during the 12 months that ended in July, up from 4,335 for the year that ended in June.
As a percentage of overall housing closings, new home closings represented 5.9% of overall housing closings. A year ago, new home closings represented 6.4%. Following a year-over-year increase in June, closings of new and existing homes also jumped year-over-year in July.
Pricing and Mortgage Trends
In July, the average price of newly sold homes declined 1.8% year-over-year to $393,041 per unit. This drop compares to a 3.1% hike in June year-over-year.
For newly sold homes, average mortgage size moved from $326,592 in July 2014 to $328,967 in July 2015. In June 2015, average mortgage size on newly sold homes saw a 6.6% gain year-over-year 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 gained from 84.8% of new closings in July 2014 to 88.4% of closings in July 2015. Meanwhile, attached units as a percentage of all new home closings slid to 11.6% of closings from 15.2% of closings.
There was a 11.4% fall year-over-year in the average unit size of newly sold homes to 2,458 square feet in July 2015. The average size of newly sold homes moved from 2,629 square feet in June 2014 to 2,539 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 12.7% of existing home closings, below 21.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.4% in July from 8.8% a year earlier while REO closings as a percentage of existing home closings slid to 7.3% from 12.2% a year earlier.