In the Reno, NV market, closings of new homes declined year-over-year in February, and the market seemed to be weakening with a percentage fall steeper than in January 2016. New home closings saw a drop of 31.1% from the year earlier to 91. This came after a 21.0% fall year-over-year in January.
A total of 1,412 new homes were sold during the 12 months that ended in February, down from 1,453 for the year that ended in January.
Out of all housing closings, new home closings accounted for 13.9%. This is down from the a year earlier when new home closings represented 19.0% of total closings. Closings of new and existing homes declined year-over-year in February after also falling in January year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price jumped 17.4% year-over-year in February to $406,749 per unit. This lift is higher than the 15.1% boost in January year-over-year.
The average mortgage size on newly sold homes jumped year-over-year along with the average price of new homes. It increased 7.9% in February from a year earlier to $302,112. In January 2016, average mortgage size on newly sold homes saw a 9.6% gain year-over-year from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units gained from 0.8% of closings in February 2015 to 3.3% of closings in February 2016. At the same time, the share belonging to single-family homes fell to 96.7% of closings from 99.2% of closings.
There was a 2.7% surge year-over-year in the average unit size of newly sold homes to 2,328 square feet in February 2016. An increase in both the average size and price of newly sold homes was also seen in January 2016 when the average size rose 5.6% to 2,333 square feet. The average size of newly sold homes moved from 2,209 square feet in January 2015 to 2,333 square feet in January 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in February, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 14.5% of closings, below 19.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 5.7% in February from 6.9% a year earlier while REO closings as a percentage of existing home closings fell to 8.8% from 12.8% a year earlier.