In December, the Fargo, ND market saw a decline year-over-year in new home closings, and the percentage drop was steeper than November 2015, suggesting the market may be worsening. New home closings saw a decline of 60.0% from the year earlier to 34. This was after the housing market saw a 58.5% decline year-over-year in November.
A total of 458 new homes were sold during the 12 months that ended in December, down from 509 for the year that ended in November.
New home closings accounted for 8.4% of overall housing closings. This is a drop 18.8% of closings a year earlier. Following a year-over-year decline in November, closings of new and existing homes also slid year-over-year in December.
Pricing and Mortgage Trends
The average price of newly sold homes grew year-over-year 35.2% in December to $400,754 per unit. This hike is an improvement over the 12.3% surge in November year-over-year.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. In December 2015, there was a 30.9% boost in the average mortgage size, reaching $322,858. In November 2015, average mortgage size on newly sold homes saw a 14.6% lift year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes rose from 91.8% in December 2014 to all of closings in December 2015. Conversely, the share of new home closings belonging to attached units declined to no part of closings from 8.2% of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 4.6% of existing closings, lower than 7.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 1.9% in December from 4.4% a year earlier and REO closings moved from 3.5% of existing home closings in December 2014 to 2.7% in December 2015.