In the Billings, MT market, new home closings dropped year-over-year in May, and the decline was by a larger percentage than the April 2016. New home closings moved from 32 a year earlier to 7 after the figure moved from 24 in April 2015 to 10 in April 2016.
A total of 154 new homes were sold during the 12 months that ended in May, down from 179 for the year that ended in April.
New home closings were 10.4% of total closings a year earlier, and this percentage saw a decline as new home closings this year made up 7 of the 332 total closings. Following a fall in April year-over-year, closings of new and existing homes rose year-over-year in May.
Pricing and Mortgage Trends
The average value of newly sold homes in May 2016 was $246,436, down from last year's $287,781. This followed a 26.3% decline in April from a year earlier.
The average mortgage size went down to $213,888 from $245,350 a year earlier. Average mortgage size on new homes went from $235,823 in April 2015 to $171,824 in April 2016.
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.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 6.8% of existing home closings, higher than 6.5% a year earlier. The percentage of existing home closings involving foreclosures went from 3.6% in May 2015 to 3.1% in May 2016 and REO closings moved from 2.9% of existing home closings in May 2015 to 3.7% in May 2016.