In June, there was a drop year-over-year in new home closings in the Indianapolis, IN market, sliding down after a lift in May 2016. New home closings saw a fall of 24.2% from the year earlier to 273. This came on the heels of a 5.9% jump year-over-year in May.
A total of 3,320 new homes were sold during the 12 months that ended in June, down from 3,407 for the year that ended in May.
Out of all housing closings, new home closings represented 6.4%. New home closings were 7.1% of overall closings last year. After rising year-over-year in May, closings of new and existing homes fell year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes dropped 1.6% year-over-year in June to $284,264 per unit. This fall is a drop off from the 6.2% drop in May from a year earlier.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. In June 2016, average mortgage size slid 1.6% from a year earlier to $242,533. In May 2016, average mortgage size dropped 5.5% 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. Attached unit closings climbed from 6.9% of all closings in June 2015 to 12.1% of closings in June 2016. Meanwhile, single-family home closings as a percentage of all new home closings fell to 87.9% of closings from 93.1% of closings.
There was a 7.8% bump year-over-year in the average unit size of newly sold homes to 3,177 square feet in June 2016. In May, the average size of new homes sold went from 3,082 square feet a year earlier to 3,085 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 20.4% of existing home closings, below 22.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 11.4% in June from 9.7% a year earlier while REO closings as a percentage of existing home closings dropped to 9.0% from 12.9% a year earlier.