The Worcester, MA market saw a drop in new home closings year-over-year in August, but the decline was less than the year-over-year decline in July. New home closings moved from 20 a year earlier to 2 after the figure moved from 13 in July 2014 to 1 in July 2015.
A total of 63 new homes were sold during the 12 months that ended in August, down from 81 for the year that ended in July.
On a percentage basis, new home closings as a part of total closings decreased to 0.2% from 2.0% a year earlier. Following a year-over-year increase in July, closings of new and existing homes also jumped year-over-year in August.
Pricing and Mortgage Trends
The average price of new homes was $467,756, an increase from $373,198 a year earlier. This was on the heels of a 19.9% boost in July year-over-year.
Average mortgage size on new homes rose from $270,983 to $394,150. Average mortgage size on new homes went from $344,243 in July 2014 to $485,025 in July 2015.
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 rose from 2,078 square feet a year earlier to 2,145 square feet.
Foreclosures and real estate owned (REO) closings increased in August from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 14.9% of existing home closings, up from 13.5% a year earlier. The percentage of existing home closings involving foreclosures went from 5.8% in August 2014 to 5.5% in August 2015 and REO closings as a percentage of existing home closings increased to 9.4% from 7.7%.