The Madison, WI market saw a drop in new home closings year-over-year in November, and there were signs of weakening market conditions with a percentage drop steeper than that of October 2015. There was a 49.0% drop in new home closings from a year earlier. This came after a 11.4% drop year-over-year in October.
A total of 439 new homes were sold during the 12 months that ended in November, down from 463 for the year that ended in October.
As a percentage of overall housing closings, new home closings accounted for 3.8%. This is down from the 7.2% of closings a year earlier. After rising year-over-year in October, closings of new and existing homes declined year-over-year in November.
Pricing and Mortgage Trends
The average price of new homes was $347,774 per unit in November, up 17.2%from a year earlier. This hike is higher than the 6.7% bump in October year-over-year.
Average mortgage size on new homes rose year-over-year along with new home prices. In November 2015, the average mortgage size was $289,999, up 2.4% from a year earlier. Average mortgage size fell 5.3% in October 2015 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 83.7% of new home closings to 84.0% of closings while attached units have gone from 16.3% of closings to 16.0% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in November, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 12.6% of existing closings, lower than 20.3% a year earlier. The percentage of existing home closings involving foreclosures went from 5.9% in November 2014 to 5.2% in November 2015 and REO closings as a percentage of existing home closings slid to 7.4% from 14.4% a year earlier.