Closings of new homes slid year-over-year in April in the Fargo, ND market, and there were hints of worsening market conditions as the percentage drop was steeper than March 2016. Closings dropped 60.4% from a year earlier to 19. This came on the heels of a 59.2% drop year-over-year in March.
A total of 461 new homes were sold during the 12 months that ended in April, down from 490 for the year that ended in March.
New home closings represented 6.4% of overall housing closings. This is down from the 12.9% of closings a year earlier. Following a year-over-year decline in March, closings of new and existing homes also declined year-over-year in April.
Pricing and Mortgage Trends
The average price of newly sold homes fell 6.1% year-over-year in April to $298,717 per unit. This fall compares to a 19.1% lift in March year-over-year.
The average mortgage size on newly sold homes saw a bump year-over-year in contrast to new home prices. In April 2016, the average mortgage size was $280,911, up 10.5% from a year earlier. In March 2016, average mortgage size grew 12.5% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes rose from 93.8% in April 2015 to all of closings in April 2016. Conversely, the share of new home closings belonging to attached units declined to no part of closings from 6.2% of closings.
For all new homes sold, the average unit size increased 46.4% year-over-year to 2,732 square feet in April 2016. The average size of newly sold homes moved from 1,779 square feet in March 2015 to 2,005 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 4.3% of closings, below 6.8% a year earlier. The percentage of existing home closings involving foreclosures slid to 1.4% in April from 3.7% a year earlier and REO closings moved from 3.1% of existing home closings in April 2015 to 2.9% in April 2016.