In May, there was a fall year-over-year in new home closings in the Cleveland, OH market, but the decline was less than the year-over-year decline in April. New home closings moved from 87 a year earlier to 15 after the figure moved from 63 in April 2015 to 9 in April 2016.
A total of 519 new homes were sold during the 12 months that ended in May, down from 591 for the year that ended in April.
Out of all housing closings, new home closings accounted for 0.4%. This is down from the 2.6% of closings a year earlier. Following a year-over-year increase in April, closings of new and existing homes also grew year-over-year in May.
Pricing and Mortgage Trends
For newly sold homes, the average price sank 13.4% year-over-year in May to $251,593 per unit. This decline is larger than the 10.4% fall in April 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 May 2016, the average mortgage size on newly sold homes saw a 11.2% fall from a year earlier. Average mortgage size on new homes went from $218,898 in April 2015 to $233,425 in April 2016.
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. Single-family home closings rose from 83.9% of new closings in May 2015 to 86.7% of closings in May 2016. Conversely, the share of new home closings belonging to attached units declined to 13.3% of closings from 16.1% of closings.
The average unit size of newly sold homes dropped 16.0% year-over-year to 1,910 square feet in May 2016. The average size of newly sold homes moved from 2,153 square feet in April 2015 to 1,665 square feet in April 2016. A decrease in both the average size and price of newly sold homes was also seen in April 2016 when the average size climbed 22.7% to 1,665 square feet.
Foreclosures and real estate owned (REO) closings fell in May from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings accounted for 30.4% of existing home closings, below 35.4% a year earlier. The percentage of existing home closings involving foreclosures dropped to 17.4% in May from 19.2% a year earlier while REO closings as a percentage of existing home closings slid to 13.0% from 16.2% a year earlier.