Closings of new homes slid year-over-year in February in the Salisbury, MD market, and the decline was similar to January 2016. New home closings moved from 2 a year earlier to 1 after the figure moved from 2 in January 2015 to 1 in January 2016.

A total of 45 new homes were sold during the 12 months that ended in February, down from 46 for the year that ended in January.

New home closings were 1 out of the 125 total closings, a move on a percentage basis from 2 of 121 a year earlier. After dropping in January from a year earlier, closings of new and existing homes climbed year-over-year in February.

Pricing and Mortgage Trends

The average new home price was $164,500, down from $280,050 a year earlier. This was on the heels of a 98.2% lift in January year-over-year.

The average mortgage size went down to $156,275 from $253,325 a year earlier.

Other Market Trends

The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.

The average unit size of newly sold homes fell from 2,342 square feet a year earlier to 2,130 square feet.

Foreclosures and real estate owned (REO) closings decreased in February from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings made up 38.7% of existing home closings, below 55.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.3% in February from 29.4% a year earlier while REO closings as a percentage of existing home closings gained to 31.5% from 26.1%.

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