Closings of new homes in the Washington, DC market fell year-over-year in January, drawing a downward slope off of a rise in December 2015. New home closings saw a decline of 13.8% from the year earlier to 487. In comparison, new home closings in the same month last year saw a 5.4% climb year-over-year in December.
A total of 10,688 new homes were sold during the 12 months that ended in January, down from 10,766 for the year that ended in December.
As a percentage of overall housing closings, new home closings represented 8.8%. This is a fall 10.2% of closings a year earlier. Closings of new and existing homes remained steady in January after rising in December year-over-year.
Pricing and Mortgage Trends
In January, there was a 3.3% fall year-over-year in the average per-unit price of newly sold homes, settling at $514,052. This drop is larger than the 2.0% decline in December from a year earlier.
The average mortgage size on newly sold homes declined year-over-year in contrast to the average price of new homes. Average mortgage size sank 2.4% to $427,621 in January from a year earlier. Average mortgage size sank 2.1% in December 2015 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings grew from 49.0% of new closings in January 2015 to 52.6% of closings in January 2016. At the same time, the share of new home closings belonging to attached units dropped to 47.4% of closings from 51.0% of closings.
For all new homes sold, the average unit size sank 8.6% year-over-year to 2,881 square feet in January 2016. The average size of newly sold homes moved from 3,164 square feet in December 2014 to 3,024 square feet in December 2015. A drop was also seen in December 2015 when the average size of new homes sold declined 4.4% to 3,024 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in January, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 23.7% of closings, below 26.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 8.6% in January from 14.5% a year earlier while REO closings as a percentage of existing home closings gained to 15.2% from 12.4%.
Please refer to the ABOUT THIS MSA tab to learn more about geographic coverage and data availability in the Washington, DC area.