New home closings in the New York, NY market sank year-over-year in January, and the percentage fall was more severe than December 2015, indicating the market may be worsening. New home closings saw a decline of 26.3% from the year earlier to 309. This was after the housing market saw a 9.1% decline year-over-year in December.
A total of 5,268 new homes were sold during the 12 months that ended in January, down from 5,378 for the year that ended in December.
As a percentage of overall housing closings, new home closings represented 3.3% of overall housing closings. They made up 4.2% of closings a year earlier. Closings of new and existing homes slid year-over-year in January after also falling in December year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 23.2% decline year-over-year in January to $639,758 per unit. This fall is larger than the 21.9% decline in December from a year earlier.
For newly sold homes, the average mortgage size saw a fall year-over-year in contrast to new home prices. Average mortgage size fell 12.3% to $434,545 in January from a year earlier. In December 2015, average mortgage size slid 13.5% from a year earlier.
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. The share of new home closings belonging to attached units rose from 57.0% of closings in January 2015 to 58.6% of closings in January 2016. Conversely, the share belonging to single-family homes slid to 41.4% of closings from 43.0% of closings.
For all new homes sold, the average unit size fell 18.5% year-over-year to 1,677 square feet in January 2016. The average size of newly sold homes moved from 1,962 square feet in December 2014 to 1,946 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 17.0% of existing closings, lower than 19.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.8% in January from 10.6% a year earlier and REO closings moved from 9.0% of existing home closings in January 2015 to 9.2% in January 2016.