In the Dover, DE market, new home closings declined year-over-year in June, sliding down after a gain in May 2015. There was a 21.7% decline in new home closings from a year earlier. This came after a 27.3% jump year-over-year in May.
A total of 585 new homes were sold during the 12 months that ended in June, down from 598 for the year that ended in May.
Out of all housing closings, new home closings represented 20.7%. This is a fall 28.0% of closings a year earlier. Following a year-over-year increase in May, closings of new and existing homes also rose year-over-year in June.
Pricing and Mortgage Trends
In June, the average value of new homes saw a 17.4% bump year-over-year as it grew to $294,700 per unit. This surge is higher than the 6.3% boost in May year-over-year.
For newly sold homes, the average mortgage size gained year-over-year along with new home prices. It grew 15.8% in June from a year earlier to $259,069. In May 2015, average mortgage size on newly sold homes saw a 8.0% lift year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings jumped from 78.3% of new closings in June 2014 to 87.2% of closings in June 2015. At the same time, the share of new home closings belonging to attached units slid to 12.8% of closings from 21.7% of closings.
For all new homes sold, the average unit size fell 25.2% year-over-year to 1,656 square feet in June 2015. This decline was opposite the price rise, a pattern also seen in May 2015 when the average size of newly sold homes dropped 12.7% to 2,122 square feet. In May, the average size of new homes sold went from 2,430 square feet a year earlier to 2,122 square feet.
Foreclosures and real estate owned (REO) closings decreased in June from a year earlier, but stayed a drag on the market. Together, foreclosures plus REO closings made up 27.2% of existing home closings, down from 35.1% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.2% in June from 22.1% a year earlier while REO closings as a percentage of existing home closings grew to 20.0% from 13.0%.