The Washington, DC market saw a rise in new home closings in December year-over-year, but signs of market leveling were showing as the percentage surge was less than November 2015. New home closings saw a 2.1% boost from a year earlier to 1,257. This followed a 4.2% boost year-over-year in November.
A total of 10,646 new homes were sold during the 12 months that ended in December, up from 10,620 for the year that ended in November.
As a percentage of overall housing closings, new home closings represented 15.6% of overall housing closings. A year ago, new home closings represented 16.0%. Closings of new and existing homes increased year-over-year in December after also rising in November year-over-year.
Pricing and Mortgage Trends
The average per-unit value of new homes fell year-over-year to $531,290 in December, a decline of 1.9% from a year earlier. This drop compares to a 9.7% gain in November year-over-year.
The average mortgage size on newly sold homes sank year-over-year in contrast to the average price of new homes. The average mortgage size slid to $440,826 in December, marking a 1.9% decline compared with last year. In November 2015, average mortgage size jumped 7.1% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings grew from 54.3% of all closings in December 2014 to 57.0% of closings in December 2015. Meanwhile, single-family home closings as a percentage of all new home closings fell to 43.0% of closings from 45.7% of closings.
The average unit size of newly sold homes slid 7.0% year-over-year to 2,970 square feet in December 2015. The average size of newly sold homes moved from 3,056 square feet in November 2014 to 2,713 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 17.2% of closings, below 19.2% a year earlier. The percentage of existing home closings involving foreclosures dropped to 7.9% in December from 9.0% a year earlier and REO closings moved from 10.2% of existing home closings in December 2014 to 9.4% in December 2015.