In March, the Washington, DC market saw a fall year-over-year in new home closings, drawing a downward slope off of a rise in February 2016. New home closings saw a 7.1% decline from a year earlier to 828. This came after a 4.7% climb year-over-year in February.
A total of 11,037 new homes were sold during the 12 months that ended in March, down from 11,100 for the year that ended in February.
Out of all housing closings, new home closings accounted for 11.2%. A year ago, 11.7% of total closings were new home closings. After rising year-over-year in February, closings of new and existing homes declined year-over-year in March.
Pricing and Mortgage Trends
The average price of new homes declined by 2.2% year-over-year to $522,122 per unit in March. This decline is a drop off from the 2.7% fall in February from a year earlier.
The average mortgage size on newly sold homes sank year-over-year in contrast to the average price of new homes. In March 2016, there was a 2.0% decline in the average mortgage size on new homes to $443,255. In February 2016, average mortgage size dropped 1.7% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes rose from 46.0% in March 2015 to 48.2% of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings slid to 51.8% of closings from 54.0% of closings.
The average unit size of newly sold homes declined 11.7% year-over-year to 2,722 square feet in March 2016. A drop was also seen in February 2016 when the average size of new homes sold sank 11.1% to 2,776 square feet. The average size of newly sold homes moved from 3,122 square feet in February 2015 to 2,776 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in March, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 18.1% of closings, below 20.4% a year earlier. The percentage of existing home closings involving foreclosures dropped to 7.0% in March from 8.8% a year earlier and REO closings moved from 11.6% of existing home closings in March 2015 to 11.1% in March 2016.
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