In the Boston, MA market in November, new home closings declined year-over-year, but compared with October 2015, the percentage drop was less steep, suggesting that the market may be leveling out. New home closings saw a fall of 18.8% from the year earlier to 39. This was after the housing market saw a 36.7% fall year-over-year in October.
A total of 537 new homes were sold during the 12 months that ended in November, down from 546 for the year that ended in October.
Of the total number of closings, new home closings made up 0.9%. As a part of the whole, new home closings were 1.1% a year earlier. After increasing in October from a year earlier, closings of new and existing homes remained level in November.
Pricing and Mortgage Trends
The average per-unit value of new homes fell year-over-year to $440,724 in November, a decline of 28.6% from a year earlier. This decline is larger than the 6.6% drop in October from a year earlier.
For newly sold homes, the average mortgage size dropped year-over-year in contrast to average price of new homes. In November 2015, average mortgage size fell 17.0% from a year earlier to $323,653. In October 2015, average mortgage size on newly sold homes saw a 8.1% fall from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have fallen. Attached unit closings increased from 35.4% of all closings in November 2014 to 69.2% of closings in November 2015. Conversely, the share belonging to single-family homes fell to 30.8% of closings from 64.6% of closings.
For all new homes sold, the average unit size dropped 18.0% year-over-year to 1,847 square feet in November 2015. A decrease in both the average size and price of newly sold homes was also seen in October 2015 when the average size climbed 23.6% to 1,764 square feet. In October, the average size of new homes sold went from 2,309 square feet a year earlier to 1,764 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 12.9% of closings, below 14.2% a year earlier. The percentage of existing home closings involving foreclosures went from 7.1% in November 2014 to 6.5% in November 2015 and REO closings moved from 7.1% of existing home closings in November 2014 to 6.4% in November 2015.