New Home Closings Rise in Minneapolis-St. Paul According to Newest Data
Posted on: May 06, 2013 07:24:09 AM
In the Minneapolis-St. Paul, MN market, new home closings jumped year-over-year in January, and there were suggestions that the market may be gaining momentum as the percentage rise proved better than December 2012. There was a 60.0% climb in new home closings from a year earlier. This followed a 50.3% hike year-over-year in December.
A total of 3,368 new homes were sold during the 12 months that ended in January, up from 3,278 for the year that ended in December.
As a percentage of overall housing closings, new home closings accounted for 5.9%. This marks a rise from 4.1% of total closings a year earlier. For new and existing homes, closings grew year-over-year in January after also increasing in December year-over-year.
Pricing and Mortgage Trends
The average value for new homes sold in January 2013 was $325,190, a move from $327,932 a year earlier. This was on the heels of a 23.1% bump in December year-over-year.
Average mortgage size on new homes dipped year-over-year in contrast to new home prices. It declined to $275,754 in January, a 1.8% decline. In December 2012, average mortgage size rose 18.3% from a year earlier. For newly sold homes, the percentage of sale price being financed moved to 84.8% from a year earlier figure of 85.7%. This came after a 3.4 percentage point decline in December from the year earlier.
New Home Closings Rise in Minneapolis-St. Paul According to Newest Data
Posted on: May 06, 2013 07:24:09 AM
In the Minneapolis-St. Paul, MN market, new home closings jumped year-over-year in January, and there were suggestions that the market may be gaining momentum as the percentage rise proved better than December 2012. There was a 60.0% climb in new home closings from a year earlier. This followed a 50.3% hike year-over-year in December.
A total of 3,368 new homes were sold during the 12 months that ended in January, up from 3,278 for the year that ended in December.
As a percentage of overall housing closings, new home closings accounted for 5.9%. This marks a rise from 4.1% of total closings a year earlier. For new and existing homes, closings grew year-over-year in January after also increasing in December year-over-year.
Pricing and Mortgage Trends
The average value for new homes sold in January 2013 was $325,190, a move from $327,932 a year earlier. This was on the heels of a 23.1% bump in December year-over-year.
Average mortgage size on new homes dipped year-over-year in contrast to new home prices. It declined to $275,754 in January, a 1.8% decline. In December 2012, average mortgage size rose 18.3% from a year earlier. For newly sold homes, the percentage of sale price being financed moved to 84.8% from a year earlier figure of 85.7%. This came after a 3.4 percentage point decline in December from the 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 increased from 90.7% in January 2012 to 91.7% of closings in January 2013. Meanwhile, attached units as a percentage of all new home closings dropped to 8.3% of closings from 9.3% of closings.
There was a 25.7% drop year-over-year in the average unit size of newly sold homes to 1,704 square feet in January 2013. The average size of newly sold homes moved from 2,396 square feet in December 2011 to 1,694 square feet in December 2012.
Foreclosures and real estate owned (REO) closings remained a burden on the market. Together, foreclosures plus REO closings made up 54.9% of existing home closings. They represented 60.6% in January 2012. The percentage of existing home closings involving foreclosures slipped to 28.1% in January from 30.5% a year earlier while REO closings as a percentage of existing home closings fell to 26.8% from 30.2% a year earlier.
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Source: Housing Intelligence