Closings of new homes in the Ocean City, NJ market jumped year-over-year in February, rebounding from a year-over-year decline in January 2016. New home closings moved from 2 a year earlier to 7 after the figure moved from 5 in January 2015 to 4 in January 2016.

A total of 76 new homes were sold during the 12 months that ended in February, up from 71 for the year that ended in January.

New home closings were 7 out of 245 total closings, making up 2.9%. This is up on a percentage basis from 2 of 228 a year earlier. For new and existing homes, closings jumped year-over-year in February after also increasing in January year-over-year.

Pricing and Mortgage Trends

The average new home price was $410,914, down from $646,250 a year earlier. This was on the heels of a 10.5% decline in January from a year earlier.

The average mortgage size went down to $411,723 from $805,000 a year earlier. Average mortgage size on new homes went from $728,744 in January 2015 to $547,000 in January 2016.

Other Market Trends

As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.

The average unit size of newly sold homes fell from 1,879 square feet a year earlier to 1,189 square feet.

Foreclosures and real estate owned (REO) closings continued to rise in February from a year earlier and remained a drag on the market. Together, foreclosures plus REO closings made up 26.9% of existing home closings, up from 13.7% a year earlier. The percentage of existing home closings involving foreclosures rose to 14.7% in February from 8.0% a year earlier while REO closings as a percentage of existing home closings increased to 12.2% from 5.8%.

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