In the Fargo, ND market, closings of new homes fell year-over-year in July, and the decline was by a larger percentage than the June 2015. New home closings moved from 47 a year earlier to 12 after the figure moved from 63 in June 2014 to 27 in June 2015.
A total of 484 new homes were sold during the 12 months that ended in July, down from 519 for the year that ended in June.
New home closings were 9.7% of total closings a year earlier, and this percentage saw a drop as new home closings this year made up 12 of the 514 total closings. For new and existing homes, closings climbed year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
The average new home value went from $297,983 last year to $447,380. This came after a 4.2% surge in June year-over-year.
Average mortgage size on new homes increased to $304,535 from $259,558 last year. In June 2015, average mortgage size on newly sold homes saw a 17.4% hike year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
The average unit size of newly sold homes rose from 2,102 square feet a year earlier to 2,325 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 5.4% of existing home closings, below 6.0% a year earlier. The percentage of existing home closings involving foreclosures went from 3.0% in July 2014 to 2.2% in July 2015 and REO closings moved from 3.0% of existing home closings in July 2014 to 3.2% in July 2015.