In the Reno, NV market in May, new home closings slid year-over-year, and the percentage drop was steeper than April 2016, suggesting the market may be worsening. Closings fell 19.2% from a year earlier to 97. This came on the heels of a 10.5% fall year-over-year in April.
A total of 1,414 new homes were sold during the 12 months that ended in May, down from 1,437 for the year that ended in April.
Out of all housing closings, new home closings represented 11.1%. This is down from the 13.1% of closings a year earlier. Closings of new and existing homes fell year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
In May, the average value of new homes saw a 11.8% gain year-over-year as it grew to $420,475 per unit. This surge is better than the 10.5% boost in April year-over-year.
Average mortgage size on new homes jumped year-over-year along with new home prices. In May 2016, average mortgage size rose 6.0% from a year earlier to $317,379. Average mortgage size grew 3.8% in April 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
The average unit size of newly sold homes climbed 23.1% year-over-year to 2,801 square feet in May 2016. In April, the average size of new homes sold went from 2,440 square feet a year earlier to 2,437 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 11.6% of existing home closings, below 14.1% a year earlier. The percentage of existing home closings involving foreclosures went from 6.4% in May 2015 to 5.9% in May 2016 and REO closings as a percentage of existing home closings dropped to 5.6% from 7.8% a year earlier.