Closings of new homes slid year-over-year in May in the Atlantic City, NJ market, and the decline was by a larger percentage than the April 2016. New home closings moved from 19 a year earlier to 3 after the figure moved from 15 in April 2015 to 6 in April 2016.

A total of 112 new homes were sold during the 12 months that ended in May, down from 128 for the year that ended in April.

New home closings were 3 out of 55 total closings, making up 5.5%. This is up on a percentage basis from 19 of 462 a year earlier. Following a year-over-year decline in April, closings of new and existing homes also slid year-over-year in May.

Pricing and Mortgage Trends

The average price of new homes rose to $442,844 from last year's $296,462. This followed a 40.5% fall in April from a year earlier.

Average mortgage size on new homes increased to $452,229 from $225,714 last year. Average mortgage size on new homes went from $310,595 in April 2015 to $316,690 in April 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 2,198 square feet a year earlier to 988 square feet.

Foreclosures and real estate owned (REO) closings continued to rise in May from a year earlier and remained a drag on the market. Combined, foreclosures plus REO closings made up 48.1% of existing home closings, above 36.6% a year earlier. The percentage of existing home closings involving foreclosures rose to 34.6% in May from 23.9% a year earlier and REO closings moved from 12.6% of existing home closings in May 2015 to 13.5% in May 2016.

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