In May, there was an increase in closings of new homes in the Indianapolis, IN market year-over-year, but there were signs of market leveling as the percentage hike was less than April 2016. Closings went from 271 in May 2015 to 273 in May 2016. This came after a 5.6% jump in April from the year earlier.
A total of 3,393 new homes were sold during the 12 months that ended in May, up from 3,391 for the year that ended in April.
New home closings were 7.0% of total number of closings, same as last year. Closings of new and existing homes rose year-over-year in May following a decline in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes fell 6.7% year-over-year in May to $282,494 per unit. This decline is larger than the 2.1% drop in April from a year earlier.
The average mortgage size on newly sold homes slid year-over-year in contrast to the average price of new homes. Average mortgage size fell by 6.0% from a year earlier, settling at $240,039 in May. In April 2016, average mortgage size on newly sold homes saw a 3.6% drop from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 89.7% of new home closings to 90.1% of closings while attached units have gone from 10.3% of closings to 9.9% of closings.
There was a 1.9% fall year-over-year in the average unit size of newly sold homes to 3,022 square feet in May 2016. The average size of newly sold homes moved from 2,973 square feet in April 2015 to 3,215 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 13.8% of existing closings, lower than 17.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.5% in May from 8.2% a year earlier and REO closings moved from 9.4% of existing home closings in May 2015 to 10.3% in May 2016.