In July, there was a drop year-over-year in new home closings in the Milwaukee, WI market, moving downward after a surge in June 2015. Closings declined 33.3% from a year earlier to 26. This came after a 12.0% hike year-over-year in June.
A total of 286 new homes were sold during the 12 months that ended in July, down from 299 for the year that ended in June.
Of the total number of closings, new home closings made up 1.0%. They made up 1.6% of closings a year earlier. Closings of new and existing homes stayed level after increasing in June year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 13.3% boost year-over-year to $357,988 per unit in July. This rise compares to a period of little change in June from a year earlier.
Average mortgage size on new homes increased year-over-year along with new home prices. In July 2015, there was a 1.9% bump in the average mortgage size, reaching $276,644. In June 2015, average mortgage size on newly sold homes saw a 6.7% decline 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 increased from 28.2% of all closings in July 2014 to 34.6% of closings in July 2015. At the same time, the share belonging to single-family homes fell to 65.4% of closings from 71.8% of closings.
For all new homes sold, the average unit size gained 3.2% year-over-year to 1,862 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 20.0% of existing home closings, below 21.3% a year earlier. The percentage of existing home closings involving foreclosures dropped to 7.8% in July from 9.3% a year earlier and REO closings moved from 12.0% of existing home closings in July 2014 to 12.2% in July 2015.