In the Washington, DC market in October, closings of new homes slid year-over-year, but the percentage drop was not as steep as September 2015, suggesting market improvement. New home closings saw a decline of 8.4% from the year earlier to 794. This followed a 8.5% decline year-over-year in September.
A total of 10,370 new homes were sold during the 12 months that ended in October, down from 10,443 for the year that ended in September.
Of the total number of closings, new home closings made up 10.7%. They represented 11.3% of closings a year earlier. Following a year-over-year rise in September, closings of new and existing homes slid year-over-year in October.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year 3.8% in October to $529,748 per unit. This rise compares to a 1.4% drop in September from a year earlier.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. It grew 4.4% in October from a year earlier to $447,973. Average mortgage size went from $440,539 in September 2014 to $436,833 in September 2015.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. Attached unit closings rose from 45.2% of all closings in October 2014 to 51.4% of closings in October 2015. Conversely, the share belonging to single-family homes fell to 48.6% of closings from 54.8% of closings.
There was a 22.4% fall year-over-year in the average unit size of newly sold homes to 2,527 square feet in October 2015. In September, the average size of new homes sold went from 3,076 square feet a year earlier to 2,708 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in October, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 16.5% of existing home closings, below 21.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.1% in October from 13.2% a year earlier and REO closings moved from 8.5% of existing home closings in October 2014 to 9.4% in October 2015.