New home closings slid year-over-year in May in the Winchester, VA market, and there were signals the market may be worsening with a percentage fall steeper than that of April 2016. New home closings saw a drop of 50.0% from the year earlier to 15. This came on the heels of a 7.4% fall year-over-year in April.
A total of 367 new homes were sold during the 12 months that ended in May, down from 382 for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 11.5%. This is down from the a year earlier when new home closings accounted for 15.9% of total closings. For new and existing homes, closings declined in May after also declining in April year-over-year.
Pricing and Mortgage Trends
In May, the average price of newly sold homes rose 6.0% year-over-year to $347,749 per unit. This surge is smaller than the 10.2% rise in April year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In May 2016, the average mortgage size was $307,272, up 4.6% from a year earlier. In April 2016, average mortgage size on newly sold homes saw a 11.4% boost 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 grew from 63.3% in May 2015 to 86.7% of closings in May 2016. Conversely, the share of new home closings belonging to attached units dropped to 13.3% of closings from 36.7% of closings.
There was a 5.1% decline year-over-year in the average unit size of newly sold homes to 2,733 square feet in May 2016. This fall was opposite the price gain, a pattern also seen in April 2016 when the average size of newly sold homes fell 3.5% to 2,711 square feet. In April, the average size of new homes sold went from 2,809 square feet a year earlier to 2,711 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 9.5% of closings, below 22.0% a year earlier. The percentage of existing home closings involving foreclosures slid to 5.2% in May from 8.2% a year earlier while REO closings as a percentage of existing home closings sank to 4.3% from 13.8% a year earlier.