New home closings in the Portland, ME market fell year-over-year in May, and the decline was by a larger percentage than the April 2016. New home closings moved from 16 a year earlier to 6 after the figure moved from 5 in April 2015 to 2 in April 2016.

A total of 60 new homes were sold during the 12 months that ended in May, down from 70 for the year that ended in April.

New home closings were 6 out of the 400 total closings, down on a percentage basis from 16 of 327 a year earlier. For new and existing homes, closings climbed year-over-year in May after also increasing in April year-over-year.

Pricing and Mortgage Trends

The average price for newly sold homes moved north to $307,753 from $273,171 a year ago. This followed a 45.8% lift in April year-over-year.

From the year-ago figure of $228,756, the average mortgage size on new homes moved up to $254,896. Average mortgage size on new homes went from $180,076 in April 2015 to $266,251 in April 2016.

Other Market Trends

As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.

The average unit size of newly sold homes rose from 1,342 square feet a year earlier to 1,370 square feet.

Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 7.6% of existing home closings, down from 11.9% a year earlier. The percentage of existing home closings involving foreclosures went from 1.9% in May 2015 to 2.3% in May 2016 and REO closings as a percentage of existing home closings slid to 5.3% from 10.0% a year earlier.

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