In July, there was a decline year-over-year in new home closings in the Fargo, ND market, and the decline was by a larger percentage than the June 2016. New home closings moved from 39 a year earlier to 1 after the figure moved from 69 in June 2015 to 4 in June 2016.
A total of 324 new homes were sold during the 12 months that ended in July, down from 362 for the year that ended in June.
New home closings were 1 out of the 121 total closings, down on a percentage basis from 39 of 580 a year earlier. For new and existing homes, closings declined in July after also declining in June year-over-year.
Pricing and Mortgage Trends
The average new home price was $299,394, down from $363,831 a year earlier. This followed a 17.2% fall in June from a year earlier.
The average mortgage size moved to $199,000, down from last year's $282,914. Average mortgage size on new homes went from $271,340 in June 2015 to $250,598 in June 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in July 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 2.5% of closings, below 5.5% a year earlier. The percentage of existing home closings involving foreclosures went from 2.2% in July 2015 to 2.5% in July 2016 and REO closings as a percentage of existing home closings slid to no part from 3.3% a year earlier.