In the Madison, WI market, new home closings declined year-over-year in June, and with a percentage drop steeper than May 2015, there were suggestions the market may be worsening. There was a 20.0% fall in new home closings from a year earlier. This came after a 5.0% fall year-over-year in May.
A total of 548 new homes were sold during the 12 months that ended in June, down from 560 for the year that ended in May.
Of the total number of closings, new home closings made up 3.6%. They accounted for 4.3% of closings a year earlier. Closings of new and existing homes slid year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes increased year-over-year 1.6% in June to $320,157 per unit. This boost follows a move from $315,808 per unit to $318,875 from May 2014 to May 2015.
The average mortgage size on new homes moved north year-over-year along with new home prices. In June 2015, the average mortgage size was $294,428, a 11.0% bump from a year earlier. Average mortgage size grew 10.5% in May 2015 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. Single-family home closings rose from 85.0% of new closings in June 2014 to 91.7% of closings in June 2015. Meanwhile, attached units as a percentage of all new home closings fell to 8.3% of closings from 15.0% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 5.9% of existing home closings, down from 17.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 1.9% in June from 5.8% a year earlier while REO closings as a percentage of existing home closings slid to 4.0% from 11.7% a year earlier.