In the Baltimore, MD market in July, closings of new homes slid year-over-year, and the percentage fall was more severe than June 2015, indicating the market may be worsening. There was a 68.5% drop in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 36.4% drop year-over-year in June.
A total of 3,144 new homes were sold during the 12 months that ended in July, down from 3,346 for the year that ended in June.
New home closings accounted for 4.1% of overall housing closings. This is a decline 7.0% of closings a year earlier. Closings of new and existing homes fell year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
In July, the average price for new home closings was $419,828, a 7.8% decline from last year. This decline follows a move from $422,024 per unit to $420,164 from June 2014 to June 2015.
The average mortgage size on newly sold homes fell year-over-year in contrast to the average price of new homes. Average mortgage size slid by 5.7% from a year earlier, settling at $358,462 in July. In June 2015, average mortgage size climbed 2.4% 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. The share of new home closings belonging to attached units rose from 55.3% of closings in July 2014 to 65.6% of closings in July 2015. Meanwhile, single-family home closings as a percentage of all new home closings declined to 34.4% of closings from 44.7% of closings.
There was a 4.2% fall year-over-year in the average unit size of newly sold homes to 2,865 square feet in July 2015. In June, the average size of new homes sold went from 2,752 square feet a year earlier to 2,330 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 22.7% of existing closings, lower than 30.7% a year earlier. The percentage of existing home closings involving foreclosures declined to 2.4% in July from 17.8% a year earlier while REO closings as a percentage of existing home closings increased to 20.3% from 12.9%.