New home closings in the Cincinnati, OH market dropped year-over-year in August, and the percentage decline was more severe than July 2015, indicating the market may be worsening. New home closings saw a 79.3% drop from a year earlier to 30. This followed a 73.9% drop year-over-year in July.
A total of 928 new homes were sold during the 12 months that ended in August, down from 1,043 for the year that ended in July.
As a percentage of overall housing closings, new home closings accounted for 1.0%. This is down from the a year earlier when new home closings accounted for 4.5% of total closings. Closings of new and existing homes dropped year-over-year in August after also falling in July year-over-year.
Pricing and Mortgage Trends
In August, the average price of newly sold homes declined 10.9% year-over-year to $281,394 per unit. This decline compares to a 15.6% surge in July year-over-year.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. Average mortgage size sank by 5.1% from a year earlier, settling at $239,606 in August. In July 2015, average mortgage size grew 13.4% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings jumped from 6.9% of all closings in August 2014 to 10.0% of closings in August 2015. Meanwhile, single-family home closings as a percentage of all new home closings declined to 90.0% of closings from 93.1% of closings.
There was a 29.0% decline year-over-year in the average unit size of newly sold homes to 1,773 square feet in August 2015. In July, the average size of new homes sold went from 2,024 square feet a year earlier to 2,447 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 21.7% of closings, below 25.6% a year earlier. The percentage of existing home closings involving foreclosures fell to 9.7% in August from 13.7% a year earlier and REO closings moved from 11.9% of existing home closings in August 2014 to 12.0% in August 2015.