Closings of new homes dropped year-over-year in August in the Milwaukee, WI market, a shift downward off a boost in July 2015. New home closings saw a drop of 10.7% from the year earlier to 25. This followed a 2.4% hike year-over-year in July.
A total of 314 new homes were sold during the 12 months that ended in August, down from 317 for the year that ended in July.
New home closings, which accounted for 1.1% of overall closings, were relatively stable compared with a year earlier. Following a year-over-year rise in July, closings of new and existing homes slid year-over-year in August.
Pricing and Mortgage Trends
In August, the average price of newly sold homes declined 5.9% year-over-year to $333,925 per unit. This fall compares to a 5.1% gain in July year-over-year.
Average mortgage size on new homes increased year-over-year in contrast to new home prices. In August 2015, average mortgage size jumped 10.4% from a year earlier to $303,084. In July 2015, average mortgage size on newly sold homes saw a 1.9% lift year-over-year 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. The share of new home closings belonging to attached units climbed from 17.9% of closings in August 2014 to 28.0% of closings in August 2015. Meanwhile, single-family home closings as a percentage of all new home closings sank to 72.0% of closings from 82.1% of closings.
The average unit size of newly sold homes dropped 22.1% year-over-year to 1,821 square feet in August 2015. The average size of newly sold homes moved from 1,804 square feet in July 2014 to 1,862 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 18.2% of existing closings, lower than 21.2% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.6% in August from 9.4% a year earlier while REO closings as a percentage of existing home closings declined to 10.6% from 11.8% a year earlier.