In the Baltimore, MD market in August, new home closings fell year-over-year, but the market seemed to be suggesting improvement with a percentage drop less steep than in July 2015. New home closings saw a 35.5% drop from a year earlier to 176. This was after the housing market saw a 43.9% drop year-over-year in July.
A total of 3,263 new homes were sold during the 12 months that ended in August, down from 3,360 for the year that ended in July.
New home closings accounted for 6.2% of overall housing closings. A year ago, 6.8% of total closings were new home closings. Closings of new and existing homes sank year-over-year in August after also falling in July year-over-year.
Pricing and Mortgage Trends
In August, the average price of newly sold homes rose 9.1% year-over-year to $503,999 per unit. This hike is better than the 4.1% boost in July year-over-year.
Average mortgage size on new homes went from $394,351 in August 2014 to $398,079 in August 2015. In July 2015, average mortgage size on newly sold homes saw a 4.0% lift year-over-year from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 44.7% of new home closings to 45.5% of closings while attached units have gone from 55.3% of closings to 54.5% of closings.
For all new homes sold, the average unit size rose 20.0% year-over-year to 3,522 square feet in August 2015. The average size of newly sold homes moved from 2,986 square feet in July 2014 to 3,198 square feet in July 2015. An increase was also seen in July 2015 when the average size of new homes sold rose 7.1% to 3,198 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 20.9% of closings, below 31.5% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.2% in August from 17.9% a year earlier while REO closings as a percentage of existing home closings increased to 17.7% from 13.6%.