In the Portland, ME market, new home closings declined year-over-year in July, and the decline was by a larger percentage than the June 2016. New home closings moved from 5 a year earlier to 2 after the figure moved from 7 in June 2015 to 4 in June 2016.
A total of 58 new homes were sold during the 12 months that ended in July, down from 61 for the year that ended in June.
New home closings were 2 out of the 410 total closings, a move on a percentage basis from 5 of 392 a year earlier. Closings of new and existing homes jumped year-over-year in July following a decline in June year-over-year.
Pricing and Mortgage Trends
The average per-unit price of new homes was $232,883, compared with $293,263 last year. This was on the heels of a 68.5% lift in June year-over-year.
There was a decline in average mortgage size on new homes, going from $234,610 last year to $186,306 in July 2016. Average mortgage size on new homes went from $225,328 in June 2015 to $356,595 in June 2016.
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.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 6.1% of existing home closings, below 9.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 1.5% in July from 2.6% a year earlier while REO closings as a percentage of existing home closings dropped to 4.7% from 6.7% a year earlier.