Closings of new homes declined year-over-year in May in the Cincinnati, OH market, and the percentage decline that was steeper than April 2016 gave implications of worsening market conditions. New home closings saw a fall of 74.3% from the year earlier to 35. This came after a 67.5% fall year-over-year in April.
A total of 1,205 new homes were sold during the 12 months that ended in May, down from 1,306 for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 1.0%. This is down from the a year earlier when new home closings represented 3.7% of total closings. Closings of new and existing homes dropped year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
In May, the average price of newly sold homes jumped year-over-year to $346,808 per unit, a 6.9% lift. This gain compares to a 1.3% fall in April from a year earlier.
The average mortgage size on new homes moved north year-over-year along with new home prices. In May 2016, the average mortgage size on newly sold homes saw a 22.0% boost from a year earlier. In April 2016, average mortgage size gained 8.5% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units climbed from 11.8% of closings in May 2015 to 20.0% of closings in May 2016. Conversely, the share belonging to single-family homes fell to 80.0% of closings from 88.2% of closings.
For all new homes sold, the average unit size slid 6.8% year-over-year to 2,055 square feet in May 2016. In April, the average size of new homes sold went from 2,337 square feet a year earlier to 1,960 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 19.0% of existing closings, lower than 21.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 8.7% in May from 10.2% a year earlier while REO closings as a percentage of existing home closings dropped to 10.3% from 11.4% a year earlier.