Closings of new homes fell year-over-year in February in the Oklahoma City, OK market, and there were suggestions the market may be weakening with a percentage drop steeper than January 2016. New home closings saw a fall of 53.4% from the year earlier to 137. This was after the housing market saw a 37.2% drop year-over-year in January.
A total of 3,159 new homes were sold during the 12 months that ended in February, down from 3,316 for the year that ended in January.
Out of all housing closings, new home closings accounted for 7.5%. This is a decline 15.0% of closings a year earlier. Following a year-over-year decline in January, closings of new and existing homes also sank year-over-year in February.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year 3.0% in February to $255,069 per unit. This gain compares to a 3.0% drop in January from a year earlier.
The average mortgage size on newly sold homes rose year-over-year along with the average price of new homes. In February 2016, the average mortgage size was $229,775, a 6.9% rise from a year earlier. It went from $230,744 to $231,248 from January 2015 to January 2016.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 99.7% of new home closings to all of closings while attached units have gone from 0.3% of closings to no part of closings.
For all new homes sold, the average unit size declined 7.9% year-over-year to 1,930 square feet in February 2016. In January, the average size of new homes sold went from 2,256 square feet a year earlier to 2,369 square feet.
Foreclosures and real estate owned (REO) closings continued to rise in February from a year earlier and remained a burden on the market. Together, foreclosures plus REO closings accounted for 27.5% of existing home closings, up from 26.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 17.0% in February from 14.2% a year earlier while REO closings as a percentage of existing home closings sank to 10.5% from 12.3% a year earlier.