Closings of new homes sank year-over-year in May in the Oklahoma City, OK market, and with a percentage drop steeper than April 2016, there were hints the market may be worsening. There was a 31.9% decline in new home closings from a year earlier. This came on the heels of a 26.4% decline year-over-year in April.
A total of 3,337 new homes were sold during the 12 months that ended in May, down from 3,439 for the year that ended in April.
Out of all housing closings, new home closings represented 8.6%. This is a fall 12.7% of closings a year earlier. Closings of new and existing homes stayed level after declining in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year 13.8% in May to $281,873 per unit. This bump is higher than the 1.3% surge in April year-over-year.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. The average mortgage size rose to $242,933 in May, marking a 13.0% rise compared with a year earlier. Average mortgage size rose 1.5% in April 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 99.1% of new home closings to 99.5% of closings while attached units have gone from 0.9% of closings to 0.5% of closings.
There was a 14.9% lift year-over-year in the average unit size of newly sold homes to 2,361 square feet in May 2016. An increase in both the average size and price of newly sold homes was also seen in April 2016 when the average size increased 1.8% to 2,170 square feet. The average size of newly sold homes moved from 2,131 square feet in April 2015 to 2,170 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 16.5% of existing home closings, down from 16.7% a year earlier. The percentage of existing home closings involving foreclosures went from 7.8% in May 2015 to 8.0% in May 2016 and REO closings moved from 8.8% of existing home closings in May 2015 to 8.5% in May 2016.