In the Milwaukee, WI market in January, new home closings climbed year-over-year, but with a rise less sharp than December 2015, there were suggestions the market may be stabilizing. There was a 20.8% jump in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 30.8% boost year-over-year in December.
A total of 452 new homes were sold during the 12 months that ended in January, up from 447 for the year that ended in December.
New home closings represented 2.2% of overall housing closings. They represented 1.8% of closings a year earlier. After rising in December from a year earlier, closings of new and existing homes stayed steady in January.
Pricing and Mortgage Trends
The average price of newly sold homes jumped year-over-year 29.5% in January to $398,226 per unit. This rise is higher than the 28.0% gain in December year-over-year.
There was a lift year-over-year in the average mortgage size on new homes along with new home prices. In January 2016, there was a 19.4% gain in the average mortgage size, reaching $334,854. In December 2015, average mortgage size gained 37.8% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. The share of new home closings belonging to attached units jumped from 16.7% of closings in January 2015 to 27.6% of closings in January 2016. Conversely, the share belonging to single-family homes sank to 72.4% of closings from 83.3% of closings.
There was a 24.7% fall year-over-year in the average unit size of newly sold homes to 1,615 square feet in January 2016.
Foreclosures and real estate owned (REO) closings fell in January from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings represented 27.9% of closings, below 39.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 14.0% in January from 17.6% a year earlier while REO closings as a percentage of existing home closings fell to 13.9% from 22.3% a year earlier.