Closings of new homes in the Dover, DE market dropped year-over-year in January, and the market seemed to be weakening with a percentage drop steeper than in December 2015. There was a 19.5% decline in new home closings from a year earlier. This came after a 4.7% fall year-over-year in December.
A total of 575 new homes were sold during the 12 months that ended in January, down from 583 for the year that ended in December.
As a percentage of overall housing closings, new home closings accounted for 22.1% of overall housing closings. As a part of the whole, new home closings were 22.5% a year earlier. Following a year-over-year increase in December, closings of new and existing homes sank year-over-year in January.
Pricing and Mortgage Trends
The average value for new homes sold in January 2016 was $264,084, a move from $261,755 a year earlier. This followed a 3.0% hike in December year-over-year.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. It jumped 11.7% in January from a year earlier to $235,836. Average mortgage size rose 8.3% in December 2015 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 85.4% of new home closings to 84.8% of closings while attached units have gone from 14.6% of closings to 15.2% of closings.
There was a 18.1% boost year-over-year in the average unit size of newly sold homes to 2,686 square feet in January 2016. The average size of newly sold homes moved from 2,367 square feet in December 2014 to 1,649 square feet in December 2015.
Foreclosures and real estate owned (REO) closings decreased in January from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, represented 31.9% of existing closings, lower than 48.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 14.7% in January from 28.4% a year earlier while REO closings as a percentage of existing home closings sank to 17.2% from 19.9% a year earlier.