There was a rise in closings of new homes in the Washington, DC market in November year-over-year, but the percentage rise was less pronounced than October 2015, indicating the market may be stabilizing. New home closings saw a hike of 2.8% from the year earlier to 913. This came after a 3.3% hike year-over-year in October.
A total of 10,583 new homes were sold during the 12 months that ended in November, up from 10,558 for the year that ended in October.
Out of all housing closings, new home closings accounted for 13.2%. A year earlier, new home closings made up 14.2% of total closings. After remaining steady in October from a year earlier, closings of new and existing homes increased in November.
Pricing and Mortgage Trends
The average price of newly sold homes grew year-over-year 9.6% in November to $544,382 per unit. This surge is higher than the 4.2% hike in October year-over-year.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. In November 2015, the average mortgage size on newly sold homes saw a 7.0% gain from a year earlier. In October 2015, average mortgage size on newly sold homes saw a 5.2% rise year-over-year 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. The share of new home closings belonging to single-family homes jumped from 42.0% in November 2014 to 44.6% of closings in November 2015. Meanwhile, attached units as a percentage of all new home closings dropped to 55.4% of closings from 58.0% of closings.
There was a 9.7% drop year-over-year in the average unit size of newly sold homes to 2,759 square feet in November 2015. This decline was opposite the price lift, a pattern also seen in October 2015 when the average size of newly sold homes declined 20.4% to 2,590 square feet. The average size of newly sold homes moved from 3,255 square feet in October 2014 to 2,590 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 15.5% of closings, below 20.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 6.7% in November from 10.5% a year earlier while REO closings as a percentage of existing home closings slid to 8.7% from 9.8% a year earlier.