The Indianapolis, IN market saw a drop in new home closings year-over-year in August, but the decline in percentage terms was an improvement from July 2015, suggesting that the market may be stabilizing. There was a 1.1% drop in new home closings from a year earlier. This came after a 7.4% drop year-over-year in July.
A total of 3,095 new homes were sold during the 12 months that ended in August, down from 3,098 for the year that ended in July.
As a percentage of overall housing closings, new home closings accounted for 6.2%. This is a drop 7.7% of closings a year earlier. Following a decline in July year-over-year, closings of new and existing homes rose year-over-year in August.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 1.9% gain year-over-year in August to $285,410 per unit. This hike is smaller than the 7.0% surge in July year-over-year.
Average mortgage size on new homes climbed year-over-year along with new home prices. It grew 2.9% in August from a year earlier to $244,258. Average mortgage size rose 6.3% in July 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have slumped. Attached unit closings climbed from 5.4% of all closings in August 2014 to 8.4% of closings in August 2015. At the same time, the share belonging to single-family homes sank to 91.6% of closings from 94.6% of closings.
The average unit size of newly sold homes slid 10.3% year-over-year to 2,562 square feet in August 2015. In July, the average size of new homes sold went from 2,957 square feet a year earlier to 3,419 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in August from a year earlier and stayed a drag on the market. Foreclosures and REO closings, taken together, made up 27.2% of existing home closings, higher than 20.3% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.7% in August from 8.7% a year earlier while REO closings as a percentage of existing home closings increased to 20.5% from 11.6%.