New home closings slid year-over-year in August in the New York, NY market, and there were suggestions of weakening market conditions with a percentage fall steeper than that of July 2015. There was a 36.3% decline in new home closings from a year earlier. This came after a 26.1% fall year-over-year in July.
A total of 5,446 new homes were sold during the 12 months that ended in August, down from 5,646 for the year that ended in July.
As a percentage of overall housing closings, new home closings represented 2.6%. This is down from the 3.7% of closings a year earlier. Following a year-over-year increase in July, closings of new and existing homes dropped year-over-year in August.
Pricing and Mortgage Trends
For newly sold homes, the average price gained 12.8% year-over-year in August to $754,203 per unit. This rise is smaller than the 20.2% boost in July year-over-year.
The average mortgage size on newly sold homes saw a lift year-over-year along with new home prices. It jumped to $527,476 in August, a 22.3% rise. In July 2015, average mortgage size grew 12.0% 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 increased from 47.5% in August 2014 to 49.6% of closings in August 2015. Conversely, the share of new home closings belonging to attached units dropped to 50.4% of closings from 52.5% of closings.
There was a 19.7% fall year-over-year in the average unit size of newly sold homes to 1,850 square feet in August 2015. In July, the average size of new homes sold went from 2,268 square feet a year earlier to 2,253 square feet.
Foreclosures and real estate owned (REO) closings rose in August from a year earlier and did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 12.6% of existing home closings, up from 12.1% a year earlier. The percentage of existing home closings involving foreclosures went from 7.3% in August 2014 to 7.1% in August 2015 and REO closings moved from 4.8% of existing home closings in August 2014 to 5.5% in August 2015.