In November, there was a decline year-over-year in new home closings in the Milwaukee, WI market, and the percentage fall was steeper than October 2015, giving suggestion the market may be worsening. New home closings saw a 32.1% fall from a year earlier to 19. This came after a 26.9% decline year-over-year in October.
A total of 307 new homes were sold during the 12 months that ended in November, down from 316 for the year that ended in October.
Of the total number of closings, new home closings made up 1.1%. A year ago, new home closings represented 1.9%. After dropping in October from a year earlier, closings of new and existing homes increased year-over-year in November.
Pricing and Mortgage Trends
Average price of newly sold homes had a 13.2% drop year-over-year to $328,689 per unit in November. This decline compares to a period of stability in October from a year earlier.
For newly sold homes, the average mortgage size jumped year-over-year in contrast to new home prices. It jumped 1.1% in November from a year earlier to $256,695. In October 2015, average mortgage size rose 18.8% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings climbed from 42.9% of all closings in November 2014 to 47.4% of closings in November 2015. Conversely, the share belonging to single-family homes slid to 52.6% of closings from 57.1% of closings.
There was a 21.8% drop year-over-year in the average unit size of newly sold homes to 1,474 square feet in November 2015. The average size of newly sold homes moved from 1,954 square feet in October 2014 to 1,325 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to increase in November from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, made up 27.7% of existing home closings, up from 25.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 15.1% in November from 10.5% a year earlier while REO closings as a percentage of existing home closings slid to 12.6% from 15.4% a year earlier.