In the Washington, DC market in June, closings of new homes dropped year-over-year, and the percentage decline was more severe than May 2015, indicating the market may be worsening. Closings dropped 21.4% from a year earlier to 876. This came on the heels of a 9.4% drop year-over-year in May.
A total of 10,212 new homes were sold during the 12 months that ended in June, down from 10,450 for the year that ended in May.
New home closings accounted for 8.4% of overall housing closings. This is down from the a year earlier when new home closings represented 11.3% of total closings. Following a drop in May year-over-year, closings of new and existing homes grew year-over-year in June.
Pricing and Mortgage Trends
From June 2014 to June 2015, the average price of newly sold homes went from $530,026 to $525,917. This came after a 4.3% boost in May year-over-year.
There was a lift year-over-year in the average mortgage size on new homes in contrast to new home prices. In June 2015, the average mortgage size was $446,508, a 2.1% lift from a year earlier. In May 2015, average mortgage size grew 6.4% 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 gained from 44.0% in June 2014 to 47.5% of closings in June 2015. At the same time, the share of new home closings belonging to attached units sank to 52.5% of closings from 56.0% of closings.
There was a move in the average unit size of newly sold homes from 3,080 square feet in June 2014 to 3,070 square feet in June 2015. In May 2015, the average size of newly sold homes rose 5.5% from the year earlier. In May, the average size of new homes sold went from 3,103 square feet a year earlier to 3,275 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 9.6% of closings, below 15.6% a year earlier. The percentage of existing home closings involving foreclosures fell to 3.3% in June from 8.3% a year earlier while REO closings as a percentage of existing home closings declined to 6.3% from 7.4% a year earlier.