New home closings dropped year-over-year in June in the New York, NY market, swinging downward off a year-over-year rise in May 2016. There was a 33.0% decline in new home closings from a year earlier. This came after a 1.3% hike year-over-year in May.
A total of 7,862 new homes were sold during the 12 months that ended in June, down from 8,101 for the year that ended in May.
As a percentage of overall housing closings, new home closings accounted for 3.6% of overall housing closings. A year ago, 4.3% of total closings were new home closings. After remaining steady in May from a year earlier, closings of new and existing homes dropped year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in June to $1,254,944.00 per unit, a rise of 46.4%. This bump is smaller than the 60.7% rise in May year-over-year.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. In June 2016, there was a 22.8% boost in the average mortgage size, reaching $670,727. In May 2016, average mortgage size gained 44.2% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have slumped. Attached unit closings rose from 68.1% of all closings in June 2015 to 74.0% of closings in June 2016. At the same time, the share belonging to single-family homes declined to 26.0% of closings from 31.9% of closings.
For all new homes sold, the average unit size sank 25.0% year-over-year to 1,785 square feet in June 2016. For newly sold homes, an average size drop contrasting with an average price gain was also seen in May 2016 when the average size of newly sold homes declined 27.2% to 1,789 square feet. The average size of newly sold homes moved from 2,458 square feet in May 2015 to 1,789 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 13.6% of existing home closings, down from 15.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 6.7% in June from 9.2% a year earlier and REO closings moved from 6.7% of existing home closings in June 2015 to 6.9% in June 2016.