Closings of new homes in the Baltimore, MD market sank year-over-year in June, and the percentage drop, which was steeper than May 2015, gave signals of weakening market conditions. New home closings saw a 51.8% drop from a year earlier to 179. In comparison, new home closings in the same month last year saw a 12.3% drop year-over-year in May.
A total of 3,217 new homes were sold during the 12 months that ended in June, down from 3,409 for the year that ended in May.
As a percentage of overall housing closings, new home closings made up 6.0%. This is a fall 8.0% of closings a year earlier. Following a year-over-year decline in May, closings of new and existing homes also sank year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes fell by 2.1% year-over-year to $413,343 per unit in June. This drop is a drop off from the 2.4% fall in May from a year earlier.
For newly sold homes, average mortgage size moved from $352,327 in June 2014 to $354,712 in June 2015. In May 2015, average mortgage size on newly sold homes saw a 2.2% drop 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 climbed from 33.7% in June 2014 to 44.7% of closings in June 2015. At the same time, the share of new home closings belonging to attached units slid to 55.3% of closings from 66.3% of closings.
There was a 21.0% decline year-over-year in the average unit size of newly sold homes to 2,174 square feet in June 2015. In May, the average size of new homes sold went from 2,896 square feet a year earlier to 2,824 square feet. A decrease in both the average size and price of newly sold homes was also seen in May 2015 when the average size gained 2.5% to 2,824 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 21.8% of closings, below 30.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.7% in June from 19.9% a year earlier while REO closings as a percentage of existing home closings rose to 17.2% from 10.4%.