Minneapolis-St. Paul, MN - Newest New Home Sales Numbers Suggest Market Decline is Slowing
Posted on: May 07, 2012 09:28:50 AM
In the Minneapolis-St. Paul, MN market in January, new home sales sank year-over-year, but the market seemed to be hinting at improvement with a percentage drop less severe than in December 2011. New home sales saw a drop of 14.4% from the year earlier to 143 after sales fell 35.0% in December from the year earlier.
A total of 2,941 new homes were sold during the 12 months that ended in January, down from 2,965 for the year that ended in December.
Of the total number of sales, new home sales made up 4.2%. A year ago, 4.5% of total sales were new home sales. Following a year-over-year decline in December, sales of new and existing homes also dipped year-over-year in January.
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Pricing and Mortgage Trends
For newly sold homes, the average price rose 8.1% year-over-year in January to $324,508 per unit. This rise follows a move from $295,958 per unit to $298,560 from January 2010 to December 2011.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. It increased 6.2% in January from a year earlier to $275,062. Average mortgage size declined 6.2% in December 2011 from a year earlier. For new home sales, the percentage of the sale price that was being financed slipped 1.5 percentage points year-over-year to 84.8% in January 2012.
Minneapolis-St. Paul, MN - Newest New Home Sales Numbers Suggest Market Decline is Slowing
Posted on: May 07, 2012 09:28:50 AM
In the Minneapolis-St. Paul, MN market in January, new home sales sank year-over-year, but the market seemed to be hinting at improvement with a percentage drop less severe than in December 2011. New home sales saw a drop of 14.4% from the year earlier to 143 after sales fell 35.0% in December from the year earlier.
A total of 2,941 new homes were sold during the 12 months that ended in January, down from 2,965 for the year that ended in December.
Of the total number of sales, new home sales made up 4.2%. A year ago, 4.5% of total sales were new home sales. Following a year-over-year decline in December, sales of new and existing homes also dipped year-over-year in January.
Pricing and Mortgage Trends
For newly sold homes, the average price rose 8.1% year-over-year in January to $324,508 per unit. This rise follows a move from $295,958 per unit to $298,560 from January 2010 to December 2011.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. It increased 6.2% in January from a year earlier to $275,062. Average mortgage size declined 6.2% in December 2011 from a year earlier. For new home sales, the percentage of the sale price that was being financed slipped 1.5 percentage points year-over-year to 84.8% in January 2012.
Other Market Trends
Single-family homes accounted for a greater percentage of new home sales than last year. Single-family home sales rose from 77.8% of new sales in January 2011 to 94.4% of sales in January 2012. At the same time, the share of new home sales belonging to attached units dropped to 5.6% of sales from 22.2% of sales.
For all new homes sold, the average unit size fell 14.8% year-over-year to 1,761 square feet in January 2012. For newly sold homes, an average size fall contrasting with an average price rise was also seen in December 2011 when the average size of newly sold homes declined 15.7% to 1,932 square feet.
Foreclosures and real estate owned (REO) sales remained a drag on the market. Together, foreclosures plus REO sales made up 60.8% of existing home sales. In January 2011, they represented 67.3%. The percentage of existing home sales involving foreclosures fell to 31.1% in January from 32.2% a year earlier while REO sales as a percentage of existing home sales declined to 29.7% from 35.1% a year earlier.
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Source: Housing Intelligence