In the Boston, MA market, closings of new homes slid year-over-year in August, and the decline was by a larger percentage than the July 2015. New home closings moved from 48 a year earlier to 12 after the figure moved from 61 in July 2014 to 32 in July 2015.
A total of 365 new homes were sold during the 12 months that ended in August, down from 401 for the year that ended in July.
New home closings were 12 out of the 7,033 total closings, a move on a percentage basis from 48 of 6,254 a year earlier. Following a year-over-year increase in July, closings of new and existing homes also grew year-over-year in August.
Pricing and Mortgage Trends
The average per-unit price of new homes was $388,552, compared with $493,476 last year. This followed a 21.9% fall in July from a year earlier.
There was a decline in average mortgage size on new homes, going from $360,596 last year to $303,001 in August 2015. In July 2015, average mortgage size fell 10.9% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
The average unit size of newly sold homes rose from 2,232 square feet a year earlier to 2,602 square feet.
Foreclosures and real estate owned (REO) closings rose in August from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 9.8% of existing home closings, up from 6.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 4.7% in August from 3.2% a year earlier while REO closings as a percentage of existing home closings climbed to 5.1% from 3.3%.