New home closings sank year-over-year in March in the New York, NY market, and the market seemed to be weakening with a percentage drop steeper than in February 2016. New home closings saw a 36.3% decline from a year earlier to 346. This followed a 34.8% decline 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.

As a percentage of overall housing closings, new home closings accounted for 3.2%. This is a decline 4.7% of closings a year earlier. After rising year-over-year in February, closings of new and existing homes slid year-over-year in March.

Pricing and Mortgage Trends

In March, the average price of newly sold homes fell year-over-year to $606,160 per unit, marking a 25.7% decline from the year-earlier figure. This decline is larger than the 14.9% drop in February from a year earlier.

The average mortgage size on newly sold homes saw a decline year-over-year in contrast to new home prices. In March 2016, average mortgage size on new homes sold was $416,635, down 20.3% from a year earlier. In February 2016, average mortgage size on newly sold homes saw a 9.2% drop from a year earlier.

Other Market Trends

Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes grew from 38.5% 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 fell to 55.5% of closings from 61.5% of closings.

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

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 slid to 9.3% in March from 12.7% a year earlier while REO closings as a percentage of existing home closings jumped to 10.1% from 8.0%.

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