In the Minneapolis-St. Paul, MN market, closings of new homes declined year-over-year in October, curving down after an increase in September 2015. New home closings saw a 14.9% decline from a year earlier to 348. This followed a 30.7% boost year-over-year in September.
A total of 4,491 new homes were sold during the 12 months that ended in October, down from 4,552 for the year that ended in September.
As a percentage of overall housing closings, new home closings accounted for 5.9%. This is down from the 7.1% of closings a year earlier. For new and existing homes, closings climbed year-over-year in October after also increasing in September year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year in October to $410,672 per unit, a rise of 1.8%. This lift is smaller than the 9.1% boost in September year-over-year.
In October 2015, average mortgage size on newly sold homes moved from $339,574 to $341,231 from October 2014. In September 2015, average mortgage size on newly sold homes saw a 1.1% bump year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units grew from 13.7% of closings in October 2014 to 15.8% of closings in October 2015. At the same time, the share belonging to single-family homes fell to 84.2% of closings from 86.3% of closings.
The average unit size of newly sold homes increased 3.4% year-over-year to 2,785 square feet in October 2015. In September, the average size of new homes sold went from 2,764 square feet a year earlier to 2,673 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in October, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 17.8% of existing home closings, below 20.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 7.7% in October from 9.2% a year earlier while REO closings as a percentage of existing home closings fell to 10.1% from 11.1% a year earlier.