Closings of new homes declined year-over-year in January in the Cleveland, OH market, and the decline was by a larger percentage than the December 2015. New home closings moved from 47 a year earlier to 5 after the figure moved from 84 in December 2014 to 15 in December 2015.

A total of 412 new homes were sold during the 12 months that ended in January, down from 454 for the year that ended in December.

New home closings were 5 out of the 2,255 total closings, down on a percentage basis from 47 of 2,373 a year earlier. Following a period of little movement in December from a year earlier, closings of new and existing homes sank year-over-year in January.

Pricing and Mortgage Trends

The average per-unit price of new homes was $302,964, compared with $325,470 last year. This came after a 16.6% fall in December from a year earlier.

The average mortgage size moved to $252,313, down from last year's $259,264. In December 2015, average mortgage size slid 28.0% from a year earlier.

Other Market Trends

There was no change in the composition of the new home market with regard to the types of properties sold in January 2016.

The average unit size of newly sold homes rose from 2,549 square feet a year earlier to 3,888 square feet.

Foreclosures and real estate owned (REO) closings fell in January from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, accounted for 41.0% of existing closings, lower than 50.6% a year earlier. The percentage of existing home closings involving foreclosures dropped to 21.5% in January from 30.5% a year earlier and REO closings moved from 20.1% of existing home closings in January 2015 to 19.5% in January 2016.

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