In the Dover, DE market in June, closings of new homes declined year-over-year, curving down after an increase in May 2016. New home closings saw a decline of 15.1% from the year earlier to 45. This came on the heels of a 29.2% climb year-over-year in May.
A total of 562 new homes were sold during the 12 months that ended in June, down from 570 for the year that ended in May.
Out of all housing closings, new home closings made up 15.1%. This is down from the 22.3% of closings a year earlier. For new and existing homes, closings rose year-over-year in June after also increasing in May year-over-year.
Pricing and Mortgage Trends
In June, the average price of newly sold homes fell year-over-year to $275,989 per unit, marking a 3.6% drop from the year-earlier figure. This drop follows a move from $272,276 per unit to $269,696 from May 2015 to May 2016.
Average mortgage size on new homes went from $253,563 in June 2015 to $255,031 in June 2016. In May 2016, average mortgage size slid 1.5% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units grew from 13.2% of closings in June 2015 to 15.6% of closings in June 2016. Conversely, the share belonging to single-family homes fell to 84.4% of closings from 86.8% of closings.
For all new homes sold, the average unit size declined 14.1% year-over-year to 2,138 square feet in June 2016. In May, the average size of new homes sold went from 2,414 square feet a year earlier to 1,639 square feet.
Foreclosures and real estate owned (REO) closings continued to rise in June from a year earlier and stayed a drag on the market. Combined, foreclosures plus REO closings made up 34.4% of existing home closings, above 26.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 22.9% in June from 7.0% a year earlier while REO closings as a percentage of existing home closings dropped to 11.5% from 19.5% a year earlier.