In June, there was a fall year-over-year in new home closings in the Cleveland, OH market, and the decline was by a larger percentage than the May 2016. New home closings moved from 85 a year earlier to 9 after the figure moved from 87 in May 2015 to 15 in May 2016.
A total of 443 new homes were sold during the 12 months that ended in June, down from 519 for the year that ended in May.
New home closings represented 9 out of the 3,991 total closings, which is a smaller percentage than the 85 of 3,740 total closings a year earlier. For new and existing homes, closings jumped year-over-year in June after also increasing in May year-over-year.
Pricing and Mortgage Trends
The average per-unit price of new homes was $281,356, compared with $287,055 last year. This was on the heels of a 13.4% drop in May from a year earlier.
Average mortgage size on newly sold homes saw a decline year-over-year from $227,561 to $162,721. In May 2016, average mortgage size fell 11.2% 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 average unit size of newly sold homes fell from 2,085 square feet a year earlier to 1,779 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. Combined, foreclosures plus REO closings accounted for 25.0% of existing home closings, below 25.8% a year earlier. The percentage of existing home closings involving foreclosures rose to 13.4% in June from 10.1% a year earlier while REO closings as a percentage of existing home closings slid to 11.6% from 15.7% a year earlier.