In April, the Dover, DE market saw a decline year-over-year in new home closings, but compared with March 2016, the percentage fall was less steep, hinting the market may be strengthening. New home closings saw a 1.9% decline from a year earlier to 51. This followed a 13.5% fall year-over-year in March.
A total of 556 new homes were sold during the 12 months that ended in April, down from 557 for the year that ended in March.
New home closings made up 22.9% of overall housing closings. This is a decline 24.4% of closings a year earlier. Following a year-over-year increase in March, closings of new and existing homes also jumped year-over-year in April.
Pricing and Mortgage Trends
The average price of new homes went from $258,800 in April 2015 to $257,440 in April 2016. This followed a move from $261,633 per unit to $263,979 from March 2015 to March 2016.
There was a gain year-over-year in the average mortgage size on new homes in contrast to new home prices. In April 2016, the average mortgage size was $226,567, up 2.8% from a year earlier. Average mortgage size jumped 3.6% in March 2016 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings grew from 11.5% of all closings in April 2015 to 21.6% of closings in April 2016. Conversely, the share belonging to single-family homes sank to 78.4% of closings from 88.5% of closings.
The average unit size of newly sold homes declined 16.3% year-over-year to 1,910 square feet in April 2016. In March, the average size of new homes sold went from 2,352 square feet a year earlier to 1,924 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in April from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, made up 38.4% of existing home closings, higher than 30.4% a year earlier. The percentage of existing home closings involving foreclosures rose to a quarter in April from 13.0% a year earlier while REO closings as a percentage of existing home closings dropped to 13.4% from 17.4% a year earlier.