Closings of new homes sank year-over-year in August in the Cleveland, OH market, and the decline was by a larger percentage than the July 2015. New home closings moved from 69 a year earlier to 9 after the figure moved from 82 in July 2014 to 11 in July 2015.
A total of 272 new homes were sold during the 12 months that ended in August, down from 332 for the year that ended in July.
Last year, 69 of 3,406 total closings were new homes, and this percentage saw a decline as new home closings this year made up 9 of the 2,131 total closings. For new and existing homes, closings fell in August after also declining in July year-over-year.
Pricing and Mortgage Trends
The average new home price was $271,400, down from $298,760 a year earlier. This came after a 14.8% fall in July from a year earlier.
The average mortgage size went down to $192,129 from $250,676 a year earlier. Average mortgage size on new homes went from $230,463 in July 2014 to $201,305 in July 2015.
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 rose from 2,043 square feet a year earlier to 2,411 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 20.3% of existing closings, lower than 34.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 6.4% in August from 18.7% a year earlier while REO closings as a percentage of existing home closings declined to 13.9% from 15.9% a year earlier.