The Boston, MA market saw a drop in new home closings year-over-year in June, but the decline was less than the year-over-year decline in May. New home closings moved from 63 a year earlier to 33 after the figure moved from 48 in May 2014 to 13 in May 2015.
A total of 398 new homes were sold during the 12 months that ended in June, down from 428 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 0.4% of overall housing closings. New home closings were 0.9% of overall closings last year. Closings of new and existing homes jumped year-over-year in June after also rising in May year-over-year.
Pricing and Mortgage Trends
In June, the average price for new home closings was $406,789, a 22.7% fall from last year. This drop is a drop off from the 26.9% decline in May from a year earlier.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It fell 17.1% in June from a year earlier to $333,792. Average mortgage size on new homes went from $403,529 in May 2014 to $372,356 in May 2015.
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 gained from 46.0% in June 2014 to 57.6% of closings in June 2015. Meanwhile, attached units as a percentage of all new home closings fell to 42.4% of closings from 54.0% of closings.
For all new homes sold, the average unit size fell 5.3% year-over-year to 2,111 square feet in June 2015. The average size of newly sold homes moved from 2,062 square feet in May 2014 to 2,504 square feet in May 2015.
Foreclosures and real estate owned (REO) closings rose in June from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 9.8% of existing home closings, up from 5.7% a year earlier. The percentage of existing home closings involving foreclosures rose to 4.8% in June from 2.2% a year earlier while REO closings as a percentage of existing home closings grew to 5.0% from 3.5%.