In June, there was a fall year-over-year in new home closings in the Boston, MA market, and the percentage drop was more severe than May 2016, indicating the market may be worsening. Closings fell 80.9% from a year earlier to 29. This came on the heels of a 78.8% fall year-over-year in May.
A total of 868 new homes were sold during the 12 months that ended in June, down from 991 for the year that ended in May.
As a percentage of overall housing closings, new home closings made up 0.4%. This is a drop 1.8% of closings a year earlier. After rising year-over-year in May, closings of new and existing homes declined year-over-year in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes fell 20.2% year-over-year to $465,095 per unit. This drop is larger than the 9.4% fall in May from a year earlier.
Average mortgage size on new homes dropped year-over-year in contrast to new home prices. In June 2016, there was a 13.6% fall in the average mortgage size on new homes to $373,788. In May 2016, average mortgage size fell 27.5% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings climbed from 32.9% of all closings in June 2015 to 48.3% of closings in June 2016. At the same time, the share belonging to single-family homes slid to 51.7% of closings from 67.1% of closings.
The average unit size of newly sold homes sank 3.8% year-over-year to 2,334 square feet in June 2016. The average size of newly sold homes moved from 2,334 square feet in May 2015 to 2,105 square feet in May 2016. A drop was also seen in May 2016 when the average size of new homes sold dropped 9.8% to 2,105 square feet.
Foreclosures and real estate owned (REO) closings increased in June from a year earlier and did not look to be a burden on the market. Together, foreclosures plus REO closings represented 11.4% of existing home closings, up from 10.2% a year earlier. The percentage of existing home closings involving foreclosures stayed at 5.0% of closings in June from a year earlier while REO closings as a percentage of existing home closings increased to 6.4% from 5.1%.