New home closings sank year-over-year in December in the Cincinnati, OH market, and the market seemed to be worsening in light of the percentage fall steeper than November 2015. New home closings saw a drop of 64.1% from the year earlier to 55. This followed a 55.1% decline year-over-year in November.
A total of 1,115 new homes were sold during the 12 months that ended in December, down from 1,213 for the year that ended in November.
Out of all housing closings, new home closings represented 2.4%. This is down from the 5.7% of closings a year earlier. Closings of new and existing homes sank year-over-year in December after also falling in November year-over-year.
Pricing and Mortgage Trends
The average price of new homes sank 4.7% year-over-year in December to $290,022 per unit. This drop is a drop off from the 9.1% decline in November from a year earlier.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. In December 2015, average mortgage size on new homes sold was $241,879, down 7.2% from a year earlier. In November 2015, average mortgage size dropped 11.2% 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 jumped from 93.5% in December 2014 to all of closings in December 2015. Meanwhile, attached units as a percentage of all new home closings slid to no part of closings from 6.5% of closings.
There was a 24.4% decline year-over-year in the average unit size of newly sold homes to 1,904 square feet in December 2015. A fall was also seen in November 2015 when the average size of new homes sold sank 10.6% to 2,499 square feet. In November, the average size of new homes sold went from 2,796 square feet a year earlier to 2,499 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 20.9% of existing closings, lower than 30.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 7.4% in December from 13.7% a year earlier while REO closings as a percentage of existing home closings fell to 13.5% from 16.9% a year earlier.