Closings of new homes in the Fargo, ND market declined year-over-year in April, and the percentage drop was more severe than March 2016, indicating the market may be worsening. New home closings saw a 60.4% decline from a year earlier to 19. This followed a 59.2% decline year-over-year in March.
A total of 461 new homes were sold during the 12 months that ended in April, down from 490 for the year that ended in March.
Out of all housing closings, new home closings made up 6.4%. This is down from the 12.9% of closings a year earlier. Closings of new and existing homes dropped year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
In April, the average price of newly sold homes fell year-over-year to $298,717 per unit, marking a 6.1% drop from the year-earlier figure. This decline compares to a 19.1% bump in March year-over-year.
For newly sold homes, the average mortgage size climbed year-over-year in contrast to new home prices. In April 2016, the average mortgage size was $280,911, a 10.5% rise from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 12.5% hike year-over-year from a year earlier.
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. The share of new home closings belonging to single-family homes grew from 93.8% in April 2015 to all of closings in April 2016. Meanwhile, attached units as a percentage of all new home closings slid to no part of closings from 6.2% of closings.
There was a 46.4% gain year-over-year in the average unit size of newly sold homes to 2,732 square feet in April 2016. In March, the average size of new homes sold went from 1,779 square feet a year earlier to 2,005 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 4.3% of existing home closings, below 6.8% a year earlier. The percentage of existing home closings involving foreclosures slid to 1.4% in April from 3.7% a year earlier and REO closings moved from 3.1% of existing home closings in April 2015 to 2.9% in April 2016.