New home closings slid year-over-year in March in the New York, NY market, and the percentage drop worsened from February 2016, indicating the market may be weakening. New home closings saw a 36.3% fall from a year earlier to 346. This followed a 34.8% drop year-over-year in February.

A total of 5,623 new homes were sold during the 12 months that ended in March, down from 5,820 for the year that ended in February.

New home closings made up 3.2% of overall housing closings. This is a drop 4.7% of closings a year earlier. Following a year-over-year rise in February, closings of new and existing homes fell year-over-year in March.

Pricing and Mortgage Trends

For newly sold homes, the average price dropped 25.7% year-over-year in March to $606,160 per unit. This decline is larger than the 14.9% fall in February from a year earlier.

For newly sold homes, the average mortgage size saw a fall year-over-year in contrast to new home prices. In March 2016, average mortgage size declined 20.3% from a year earlier to $416,635. In February 2016, average mortgage size on newly sold homes saw a 9.2% fall from a year earlier.

Other Market Trends

Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings gained from 38.5% of new closings in March 2015 to 44.5% of closings in March 2016. At the same time, the share of new home closings belonging to attached units slid to 55.5% of closings from 61.5% of closings.

For all new homes sold, the average unit size slid 31.5% year-over-year to 1,832 square feet in March 2016. The average size of newly sold homes moved from 2,374 square feet in February 2015 to 1,985 square feet in February 2016. A decrease in both the average size and price of newly sold homes was also seen in February 2016 when the average size jumped 16.4% to 1,985 square feet.

Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 19.4% of existing closings, lower than 20.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 9.3% in March from 12.7% a year earlier while REO closings as a percentage of existing home closings grew to 10.1% from 8.0%.

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