Closings of new homes in the Cincinnati, OH market fell year-over-year in March, but there were signs the market may be leveling out from a percentage fall less than February 2016. Closings fell 65.1% from a year earlier to 61. This followed a 66.7% drop year-over-year in February.
A total of 1,400 new homes were sold during the 12 months that ended in March, down from 1,514 for the year that ended in February.
Out of all housing closings, new home closings represented 2.2%. This is down from the 5.5% of closings a year earlier. Closings of new and existing homes declined year-over-year in March after also falling in February year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes gained year-over-year to $322,085 in March, up 12.1% from last year. This rise is an improvement over the 3.2% lift in February year-over-year.
There was a hike year-over-year in the average mortgage size on new homes along with new home prices. The average mortgage size saw a 11.0% bump year-over-year to $251,781 in March. In February 2016, average mortgage size on newly sold homes saw a 5.3% bump year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes climbed from 82.9% in March 2015 to 91.8% of closings in March 2016. Conversely, the share of new home closings belonging to attached units sank to 8.2% of closings from 17.1% of closings.
There was a 12.6% hike year-over-year in the average unit size of newly sold homes to 2,745 square feet in March 2016. In February, the average size of new homes sold went from 2,712 square feet a year earlier to 2,255 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 23.4% of existing closings, lower than 26.6% a year earlier. The percentage of existing home closings involving foreclosures went from 10.7% in March 2015 to 10.1% in March 2016 and REO closings as a percentage of existing home closings slid to 13.4% from 15.9% a year earlier.