The Indianapolis, IN market saw a rise in new home closings in February year-over-year, but the percentage gain was less than January 2016, suggesting the market may be leveling. New home closings saw a 4.2% rise from a year earlier to 199. This came after a 17.5% boost year-over-year in January.
A total of 3,352 new homes were sold during the 12 months that ended in February, up from 3,344 for the year that ended in January.
As a percentage of overall housing closings, new home closings accounted for 6.5% of closings, relatively stable from a year earlier. For new and existing homes, closings gained year-over-year in February after also increasing in January year-over-year.
Pricing and Mortgage Trends
In February, the average value of new homes saw a 6.1% boost year-over-year as it grew to $306,598 per unit. This lift is an improvement over the 1.0% bump in January year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size saw a 3.7% hike year-over-year to $260,153 in February. Average mortgage size sank 1.1% in January 2016 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units gained from 5.8% of closings in February 2015 to 7.0% of closings in February 2016. Conversely, the share belonging to single-family homes declined to 93.0% of closings from 94.2% of closings.
There was a 1.3% drop year-over-year in the average unit size of newly sold homes to 2,778 square feet in February 2016. For newly sold homes, an average size fall contrasting with an average price hike was also seen in January 2016 when the average size of newly sold homes slid 16.4% to 2,534 square feet. In January, the average size of new homes sold went from 3,032 square feet a year earlier to 2,534 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in February from a year earlier and stayed a drag on the market. Foreclosures and REO closings, taken together, accounted for 35.2% of existing home closings, up from 34.4% a year earlier. The percentage of existing home closings involving foreclosures rose to 13.0% in February from 11.7% a year earlier and REO closings moved from 22.7% of existing home closings in February 2015 to 22.1% in February 2016.