New home closings in the South Bend, IN market sank year-over-year in April, and the decline was similar to March 2012. New home closings moved from 10 a year earlier to five after the figure moved from eight in March 2011 to four in March 2012.
A total of 94 new homes were sold during the 12 months that ended in April, down from 99 for the year that ended in March.
New home closings accounted for five of the 430 total closings, a smaller percentage compared with 10 of 458 closings a year earlier. Following a year-over-year rise in March, closings of new and existing homes dipped year-over-year in April.
Pricing and Mortgage Trends
The average price of new homes was $177,747 per unit in April 2012, which is down from $253,193 a year ago. This followed a 21.9% surge in March year-over-year.
Average mortgage size on new homes fell from $219,010 to $159,394. Average mortgage size on new homes went from $199,759 in March 2011 to $226,394 in March 2012. For new home closings, the percentage of the sale price that was being financed increased 3.2 percentage points year-over-year to 89.7% in April 2012. This came after a 6.4 percentage point decline in March from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen. Single-family home closings made up all of new home closings after accounting for nine of 10 last year. Meanwhile, attached units made up no part of new home closings after making up one of 10 closings a year earlier.
Foreclosures and real estate owned (REO) closings stayed a drag on the market. Combined, foreclosures plus REO closings made up 42.1% of existing home closings. In April 2011, they represented 37.5%. The percentage of existing home closings involving foreclosures went from 19.9% in April 2011 to 19.1% in April 2012 and REO closings as a percentage of existing home closings rose to 23.1% from 17.6%.
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