Closings of new homes in the Dover, DE market climbed year-over-year in May, moving up after a decline in April 2016. Closings climbed 29.2% from a year earlier to 62. This was after the housing market saw a 1.9% drop year-over-year in April.
A total of 570 new homes were sold during the 12 months that ended in May, up from 556 for the year that ended in April.
New home closings represented 18.0% of overall housing closings. This is down from the a year earlier when new home closings represented 22.5% of total closings. Following a year-over-year increase in April, closings of new and existing homes also gained year-over-year in May.
Pricing and Mortgage Trends
From May 2015 to May 2016, the average price of newly sold homes went from $272,276 to $269,696. This followed a move from $258,800 per unit in April 2015 to $257,440 in April 2016.
Average mortgage size on new homes saw a drop year-over-year in contrast to prices of new homes. Average mortgage size declined by 1.5% from a year earlier, settling at $236,109 in May. Average mortgage size grew 2.8% in April 2016 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 climbed from 85.4% in May 2015 to 90.3% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings fell to 9.7% of closings from 14.6% of closings.
There was a 32.1% drop year-over-year in the average unit size of newly sold homes to 1,639 square feet in May 2016. In April, the average size of new homes sold went from 2,281 square feet a year earlier to 1,910 square feet.
Foreclosures and real estate owned (REO) closings continued to rise in May from a year earlier and remained a drag on the market. Combined, foreclosures plus REO closings made up 47.2% of existing home closings, above 39.4% a year earlier. The percentage of existing home closings involving foreclosures rose to 38.3% in May from 13.3% a year earlier while REO closings as a percentage of existing home closings fell to 8.9% from 26.1% a year earlier.