Closings of new homes grew year-over-year in August in the Reno, NV market, and the market seemed to be signaling bolstering with a percentage gain stronger than July 2015. New home closings saw a rise of 23.5% from the year earlier to 100. This came on the heels of a 3.1% jump year-over-year in July.
A total of 1,371 new homes were sold during the 12 months that ended in August, up from 1,352 for the year that ended in July.
Out of all housing closings, new home closings made up 11.3%. This is a boost from 9.7% of closings a year earlier. Following a year-over-year increase in July, closings of new and existing homes also rose year-over-year in August.
Pricing and Mortgage Trends
The average price of newly sold homes jumped year-over-year 3.2% in August to $381,957 per unit. This surge is smaller than the 22.3% gain in July year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 1.4% bump year-over-year to $295,753 in August. In July 2015, average mortgage size gained 20.6% from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in August 2015. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
The average unit size of newly sold homes remained steady year-over-year at 2,373 square feet in August 2015. The average size of newly sold homes moved from 2,199 square feet in July 2014 to 2,407 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 12.0% of existing home closings, below 12.8% a year earlier. The percentage of existing home closings involving foreclosures went from 6.5% in August 2014 to 7.0% in August 2015 and REO closings as a percentage of existing home closings slid to 5.0% from 6.4% a year earlier.