In the Indianapolis, IN market, new home closings dropped year-over-year in August, but the percentage fall was not as steep as July 2015, suggesting that the market may be stabilizing. There was a 1.1% decline in new home closings from a year earlier. This came after a 7.4% drop 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 down from the 7.7% of closings a year earlier. Following a decline in July year-over-year, closings of new and existing homes grew year-over-year in August.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes rose year-over-year to $285,410 in August, up 1.9% from last year. This rise is smaller than the 7.0% hike in July year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 2.9% lift year-over-year to $244,258 in August. In July 2015, average mortgage size on newly sold homes saw a 6.3% gain year-over-year from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units increased from 5.4% of closings in August 2014 to 8.4% of closings in August 2015. Meanwhile, single-family home closings as a percentage of all new home closings declined to 91.6% of closings from 94.6% of closings.
There was a 10.3% fall year-over-year in the average unit size of newly sold homes 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 increase in August from a year earlier and remained a burden on the market. Combined, foreclosures plus REO closings accounted for 27.2% of existing home closings, above 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 climbed to 20.5% from 11.6%.