The Baltimore, MD market saw a drop in new home closings year-over-year in March, and the percentage drop was more severe than February 2016, indicating the market may be worsening. This year's new home closings dropped from last year by 14.8%, reaching 265. This followed a move from 221 in February 2015 to 311 in February 2016.
A total of 3,785 new homes were sold during the 12 months that ended in March, down from 3,831 for the year that ended in February.
Closings of new homes accounted for 8.1% of total closings, consistent with last year's figures. For new and existing homes, closings dropped in March after also declining in February year-over-year.
Pricing and Mortgage Trends
The average price of new homes sank by 1.0% year-over-year to $462,871 per unit in March. This drop compares to a 2.5% bump in February year-over-year.
Average mortgage size on new homes went from $390,964 in March 2015 to $388,841 in March 2016. In February 2016, average mortgage size jumped 6.0% 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 grew from 42.1% in March 2015 to 45.3% of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings slid to 54.7% of closings from 57.9% of closings.
The average unit size of newly sold homes sank 16.7% year-over-year to 2,443 square feet in March 2016. In February, the average size of new homes sold went from 2,989 square feet a year earlier to 2,691 square feet.
Foreclosures and real estate owned (REO) closings declined in March from a year earlier, but remained a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 29.8% of closings, below 41.0% a year earlier. The percentage of existing home closings involving foreclosures slid to 5.8% in March from 18.9% a year earlier while REO closings as a percentage of existing home closings increased to 24.0% from 22.1%.