In the Fargo, ND market in January, new home closings declined year-over-year, but with a percentage fall not as steep as December 2015, there are suggestions that the market may be stabilizing. New home closings saw a 37.5% decline from a year earlier to 20. This was after the housing market saw a 60.0% decline year-over-year in December.
A total of 446 new homes were sold during the 12 months that ended in January, down from 458 for the year that ended in December.
As a percentage of overall housing closings, new home closings made up 7.4%. This is a drop 12.5% of closings a year earlier. Following a decline in December year-over-year, closings of new and existing homes increased year-over-year in January.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $346,763 in January, up 5.4% from last year. This hike is smaller than the 35.2% boost in December year-over-year.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. The average mortgage size rose to $274,471 in January, marking a 1.9% bump compared with a year earlier. In December 2015, average mortgage size on newly sold homes saw a 30.9% boost year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes gained from 93.8% in January 2015 to all of closings in January 2016. At the same time, the share of new home closings belonging to attached units dropped to no part of closings from 6.2% of closings.
The average unit size of newly sold homes sank 2.5% year-over-year to 1,659 square feet in January 2016. The average size of newly sold homes moved from 1,841 square feet in December 2014 to 2,173 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 3.6% of existing closings, lower than 11.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 0.8% in January from 4.5% a year earlier while REO closings as a percentage of existing home closings dropped to 2.8% from 6.7% a year earlier.