In July, there was a decline year-over-year in new home closings in the Columbus, OH market, and the percentage decline was steeper than June 2015, giving suggestion the market may be worsening. New home closings saw a drop of 52.9% from the year earlier to 96. This followed a 37.6% drop year-over-year in June.
A total of 2,073 new homes were sold during the 12 months that ended in July, down from 2,181 for the year that ended in June.
As a percentage of overall housing closings, new home closings made up 2.3%. This is down from the 5.4% of closings a year earlier. For new and existing homes, closings rose year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year 6.4% in July to $310,726 per unit. This boost is better than the 4.6% hike in June year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. It rose to $264,497 in July, a 4.1% bump. Average mortgage size gained 2.0% in June 2015 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units grew from 21.1% of closings in July 2014 to 27.1% of closings in July 2015. At the same time, the share belonging to single-family homes sank to 72.9% of closings from 78.9% of closings.
There was a 25.4% fall year-over-year in the average unit size of newly sold homes to 2,016 square feet in July 2015. This drop was opposite the price boost, a pattern also seen in June 2015 when the average size of newly sold homes dropped 19.3% to 2,253 square feet. In June, the average size of new homes sold went from 2,793 square feet a year earlier to 2,253 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 17.5% of existing home closings, down from 19.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.5% in July from 10.4% a year earlier and REO closings moved from 9.3% of existing home closings in July 2014 to 9.0% in July 2015.