Closings of new homes in the New York, NY market dropped year-over-year in February, and there were signs the market may be worsening with a percentage fall steeper than that of January 2016. New home closings saw a decline of 39.7% from the year earlier to 277. This came after a 24.8% drop year-over-year in January.
A total of 5,377 new homes were sold during the 12 months that ended in February, down from 5,559 for the year that ended in January.
Out of all housing closings, new home closings made up 2.8%. This is a fall 4.9% of closings a year earlier. Following a year-over-year increase in January, closings of new and existing homes also climbed year-over-year in February.
Pricing and Mortgage Trends
The average price of newly sold homes declined 15.3% year-over-year in February to $628,486 per unit. This decline is a drop off from the 20.7% drop in January from a year earlier.
The average mortgage size on newly sold homes saw a decline year-over-year in contrast to new home prices. In February 2016, the average mortgage size on newly sold homes saw a 7.7% fall from a year earlier. In January 2016, average mortgage size slid 12.2% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings increased from 41.2% of new closings in February 2015 to 44.0% of closings in February 2016. Meanwhile, attached units as a percentage of all new home closings fell to 56.0% of closings from 58.8% of closings.
The average unit size of newly sold homes sank 20.8% year-over-year to 1,869 square feet in February 2016. The average size of newly sold homes moved from 2,512 square feet in January 2015 to 1,904 square feet in January 2016. A decrease in both the average size and price of newly sold homes was also seen in January 2016 when the average size rose 24.2% to 1,904 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in February, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 20.6% of existing home closings, below 20.8% a year earlier. The percentage of existing home closings involving foreclosures slid to 10.2% in February from 13.0% a year earlier while REO closings as a percentage of existing home closings jumped to 10.4% from 7.8%.