New home closings dropped year-over-year in April in the Reno, NV market, and with a percentage decline steeper than March 2016, there were signs the market may be worsening. New home closings saw a fall of 17.4% from the year earlier to 100. This came on the heels of a 16.3% drop year-over-year in March.
A total of 1,408 new homes were sold during the 12 months that ended in April, down from 1,429 for the year that ended in March.
Out of all housing closings, new home closings made up 13.1%. As a part of the whole, new home closings were 12.7% a year earlier. Closings of new and existing homes slid year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $429,771 per unit in April, up 10.9%from a year earlier. This hike is better than the 9.4% bump in March year-over-year.
For newly sold homes, the average mortgage size increased year-over-year along with new home prices. It gained 2.2% in April from a year earlier to $297,779. In March 2016, average mortgage size rose 5.1% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings climbed from no part of all closings in April 2015 to 1.0% of closings in April 2016. Conversely, the share belonging to single-family homes declined to 99.0% of closings from all of closings.
The average unit size of newly sold homes went from 2,464 square feet in April 2015 to 2,460 square feet in April 2016. In March 2016, the average size of newly sold homes gained 1.6% from the year earlier. In March, the average size of new homes sold went from 2,341 square feet a year earlier to 2,378 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 10.2% of existing home closings, down from 11.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.4% in April from 6.1% a year earlier while REO closings as a percentage of existing home closings stayed level at 5.9%.