In August, the Indianapolis, IN market saw a fall year-over-year in new home closings, but there were signs the market may be leveling out from a percentage fall less than July 2015. There was a 1.1% drop in new home closings from a year earlier. This followed a 7.4% fall year-over-year in July.
A total of 3,095 new homes were sold during the 12 months that ended in August, down from 3,098 for the year that ended in July.
New home closings made up 6.2% of overall housing closings. This is a decline 7.7% of closings a year earlier. Closings of new and existing homes increased year-over-year in August following a fall in July year-over-year.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year in August to $285,410 per unit, a rise of 1.9%. This lift is smaller than the 7.0% bump in July year-over-year.
The average mortgage size on newly sold homes increased year-over-year along with the average price of new homes. It climbed 2.9% in August from a year earlier to $244,258. Average mortgage size jumped 6.3% in July 2015 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. Attached unit closings rose from 5.4% of all closings in August 2014 to 8.4% of closings in August 2015. At the same time, the share belonging to single-family homes slid to 91.6% of closings from 94.6% of closings.
The average unit size of newly sold homes declined 10.3% year-over-year to 2,562 square feet in August 2015. The average size of newly sold homes moved from 2,957 square feet in July 2014 to 3,419 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to rise in August from a year earlier and remained a drag on the market. Foreclosures and REO closings, taken together, accounted for 27.2% of existing home closings, up from 20.3% a year earlier. The percentage of existing home closings involving foreclosures dropped to 6.7% in August from 8.7% a year earlier while REO closings as a percentage of existing home closings grew to 20.5% from 11.6%.