In February, the Las Vegas, NV market saw a fall year-over-year in new home closings, and there were suggestions of weakening market conditions with a percentage drop steeper than that of January 2016. New home closings saw a 14.9% drop from a year earlier to 405. This was after the housing market saw a 11.7% fall year-over-year in January.
A total of 6,759 new homes were sold during the 12 months that ended in February, down from 6,830 for the year that ended in January.
New home closings represented 9.3% of overall housing closings. This is down from the 11.6% of closings a year earlier. After dropping in January from a year earlier, closings of new and existing homes gained year-over-year in February.
Pricing and Mortgage Trends
In February, the average price of newly sold homes gained 2.8% year-over-year to $368,975 per unit. This boost is an improvement over the 1.8% surge in January year-over-year.
Average mortgage size on new homes increased year-over-year along with new home prices. In February 2016, the average mortgage size was $312,735, up 7.1% from a year earlier. In January 2016, average mortgage size on newly sold homes saw a 1.3% bump 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. Attached unit closings grew from 3.4% of all closings in February 2015 to 4.9% of closings in February 2016. At the same time, the share belonging to single-family homes fell to 95.1% of closings from 96.6% of closings.
The average unit size of newly sold homes went from 2,467 square feet in February 2015 to 2,462 square feet in February 2016. In January 2016, the average size of newly sold homes fell 12.6% from the year earlier. The average size of newly sold homes moved from 2,451 square feet in January 2015 to 2,142 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. Foreclosures and REO closings, taken together, accounted for 22.7% of existing closings, lower than 30.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.1% in February from 14.4% a year earlier while REO closings as a percentage of existing home closings slid to 12.5% from 15.8% a year earlier.