New home closings in the Columbus, OH market fell year-over-year in August, and the percentage fall, which was steeper than July 2015, gave hints that the market may be worsening. There was a 71.4% drop in new home closings from a year earlier. This came after a 51.2% drop year-over-year in July.
A total of 1,928 new homes were sold during the 12 months that ended in August, down from 2,093 for the year that ended in July.
Out of all housing closings, new home closings represented 1.8%. This is down from the 5.1% of closings a year earlier. After rising year-over-year in July, closings of new and existing homes fell year-over-year in August.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year 6.1% in August to $305,438 per unit. This bump is better than the 5.5% gain in July year-over-year.
For newly sold homes, the average mortgage size saw a hike year-over-year along with new home prices. The average mortgage size rose to $253,036 in August, marking a 5.3% gain compared with a year earlier. In July 2015, average mortgage size on newly sold homes saw a 3.1% 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 grew from 75.8% in August 2014 to 77.3% of closings in August 2015. Conversely, the share of new home closings belonging to attached units sank to 22.7% of closings from 24.2% of closings.
The average unit size of newly sold homes dropped 3.2% year-over-year to 2,474 square feet in August 2015. This fall was opposite the price hike, a pattern also seen in July 2015 when the average size of newly sold homes dropped 28.3% to 1,938 square feet. The average size of newly sold homes moved from 2,703 square feet in July 2014 to 1,938 square feet in July 2015.
Foreclosures and real estate owned (REO) closings rose in August from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 20.3% of existing home closings, up from 20.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 10.6% in August from 11.9% a year earlier while REO closings as a percentage of existing home closings rose to 9.7% from 8.1%.