New home closings in the Duluth, MN market remained steady year-over-year in May, remaining unchanged after minimal movement in April from the year earlier. Closings were unchanged at 1 from a year earlier after remaining steady at 1 in April from the year earlier.

1 of the 550 total closings were new home closings, consistent with the year-earlier figures in terms of percentage. Following a year-over-year decline in April, closings of new and existing homes also sank year-over-year in May.

Pricing and Mortgage Trends

The average per-unit price of new homes was $423,967, compared with $468,000 last year. This followed a more than threefold gain in April year-over-year.

Average mortgage size on new homes rose from $110,000 to $339,172. Average mortgage size on new homes went from $117,999 in April 2015 to $401,500 in April 2016.

Other Market Trends

There was no change in the composition of the new home market with regard to the types of properties sold in May 2016.

Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 14.9% of existing home closings, down from 17.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 6.9% in May from 9.7% a year earlier and REO closings moved from 8.2% of existing home closings in May 2015 to 8.0% in May 2016.

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