In the Fargo, ND market, new home closings dropped year-over-year in February, and the percentage fall that was steeper than January 2016 gave implications of worsening market conditions. New home closings saw a decline of 51.4% from the year earlier to 18. This was after the housing market saw a 37.5% fall year-over-year in January.
A total of 427 new homes were sold during the 12 months that ended in February, down from 446 for the year that ended in January.
New home closings accounted for 7.4% of overall housing closings. This is down from the 15.7% of closings a year earlier. Following a year-over-year increase in January, closings of new and existing homes also rose year-over-year in February.
Pricing and Mortgage Trends
In February, the average value of new homes saw a 15.4% bump year-over-year as it grew to $364,912 per unit. This surge is better than the 5.4% rise in January year-over-year.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. In February 2016, the average mortgage size on newly sold homes saw a 9.5% bump from a year earlier. In January 2016, average mortgage size rose 1.9% 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 91.9% in February 2015 to all of closings in February 2016. Conversely, the share of new home closings belonging to attached units dropped to no part of closings from 8.1% of closings.
There was a 26.6% rise year-over-year in the average unit size of newly sold homes to 2,283 square feet in February 2016. The average size of newly sold homes moved from 1,701 square feet in January 2015 to 1,659 square feet in January 2016.
Together, foreclosures plus REO closings accounted for 8.0% of existing home closings. In February 2015, they represented 8.1%. The percentage of existing home closings involving foreclosures went from 2.0% in February 2015 to 2.7% in February 2016 and REO closings moved from 6.1% of existing home closings in February 2015 to 5.4% in February 2016.