Closings of new homes in the Cincinnati, OH market fell year-over-year in June, and the percentage fall, which was steeper than May 2016, gave signs of weakening market conditions. There was a 79.6% decline in new home closings from a year earlier. This followed a 73.5% drop year-over-year in May.
A total of 1,077 new homes were sold during the 12 months that ended in June, down from 1,210 for the year that ended in May.
As a percentage of overall housing closings, new home closings accounted for 1.0%. This is a fall 3.9% of closings a year earlier. For new and existing homes, closings fell in June after also declining in May year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price jumped 7.4% year-over-year in June to $332,133 per unit. This bump is smaller than the 9.0% lift in May year-over-year.
The average mortgage size on newly sold homes saw a boost year-over-year along with new home prices. It rose 3.6% in June from a year earlier to $250,067. Average mortgage size grew 24.3% in May 2016 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. The share of new home closings belonging to attached units gained from 6.0% of closings in June 2015 to 14.7% of closings in June 2016. At the same time, the share belonging to single-family homes sank to 85.3% of closings from 94.0% of closings.
For all new homes sold, the average unit size fell 28.9% year-over-year to 1,689 square feet in June 2016. This drop was opposite the price gain, a pattern also seen in May 2016 when the average size of newly sold homes dropped 16.0% to 1,854 square feet. In May, the average size of new homes sold went from 2,206 square feet a year earlier to 1,854 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 16.6% of closings, below 23.8% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.2% in June from 12.4% a year earlier while REO closings as a percentage of existing home closings sank to 9.4% from 11.4% a year earlier.