In the Lincoln, NE market, new home closings slid year-over-year in December, and the percentage decline worsened from November 2015, indicating the market may be weakening. New home closings saw a decline of 27.6% from the year earlier to 42. This came on the heels of a 13.8% decline year-over-year in November.
A total of 617 new homes were sold during the 12 months that ended in December, down from 633 for the year that ended in November.
New home closings represented 9.2% of overall housing closings. This is a decline 13.4% of closings a year earlier. Following a drop in November year-over-year, closings of new and existing homes climbed year-over-year in December.
Pricing and Mortgage Trends
In December, the average price of newly sold homes rose year-over-year to $275,955 per unit, a 10.7% gain. This rise is better than the 3.6% surge in November year-over-year.
The average mortgage size on newly sold homes saw a lift year-over-year along with new home prices. The average mortgage size rose to $225,096 in December, marking a 8.8% gain compared with a year earlier. It went from $221,995 to $223,574 from November 2014 to November 2015.
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. Single-family home closings climbed from 74.1% of new closings in December 2014 to 90.5% of closings in December 2015. Conversely, the share of new home closings belonging to attached units dropped to 9.5% of closings from 25.9% of closings.
The average unit size of newly sold homes grew 1.1% year-over-year to 1,712 square feet in December 2015. In November, the average size of new homes sold went from 1,738 square feet a year earlier to 1,467 square feet.
Foreclosures and real estate owned (REO) closings rose in December from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 14.0% of existing home closings, up from 11.0% a year earlier. The percentage of existing home closings involving foreclosures rose to 8.9% in December from 4.3% a year earlier while REO closings as a percentage of existing home closings sank to 5.1% from 6.7% a year earlier.