Closings of new homes in the Cincinnati, OH market fell year-over-year in April, and there were signs of worsening market conditions as the percentage fall was steeper than March 2016. There was a 69.5% decline in new home closings from a year earlier. This was after the housing market saw a 64.0% drop year-over-year in March.
A total of 1,300 new homes were sold during the 12 months that ended in April, down from 1,405 for the year that ended in March.
Out of all housing closings, new home closings accounted for 1.4%. This is down from the a year earlier when new home closings made up 4.4% of total closings. Closings of new and existing homes fell year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
In April, there was a 1.4% lift year-over-year in the average price of newly sold homes, reaching $291,403 per unit. This gain is smaller than the 13.8% bump in March year-over-year.
Average mortgage size on new homes jumped year-over-year along with new home prices. In April 2016, the average mortgage size on newly sold homes saw a 10.5% lift from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 12.9% rise year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units gained from 12.6% of closings in April 2015 to 26.1% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings fell to 73.9% of closings from 87.4% of closings.
The average unit size of newly sold homes sank 16.7% year-over-year to 1,947 square feet in April 2016. The average size of newly sold homes moved from 2,437 square feet in March 2015 to 2,745 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 20.5% of existing home closings, below 25.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.8% in April from 11.8% a year earlier while REO closings as a percentage of existing home closings declined to 11.6% from 13.8% a year earlier.