In the Baltimore, MD market, closings of new homes declined year-over-year in May, a shift downward off a rise in April 2016. New home closings saw a drop of 21.1% from the year earlier to 292. This was after the housing market saw a 9.1% climb year-over-year in April.
A total of 3,748 new homes were sold during the 12 months that ended in May, down from 3,826 for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 6.1%. This is down from the a year earlier when new home closings accounted for 8.0% of total closings. New and existing home closings increased in May after a remaining level in April from a year earlier.
Pricing and Mortgage Trends
In May, the average price of newly sold homes grew year-over-year to $449,849 per unit, a 2.9% surge. This boost follows a move from $471,827 per unit to $471,080 from April 2015 to April 2016.
Average mortgage size on new homes increased year-over-year along with new home prices. It rose 2.6% in May from a year earlier to $389,291. In April 2016, average mortgage size on newly sold homes saw a 3.0% fall from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. Attached unit closings climbed from 62.2% of all closings in May 2015 to 64.4% of closings in May 2016. Conversely, the share belonging to single-family homes fell to 35.6% of closings from 37.8% of closings.
For all new homes sold, the average unit size declined 6.7% year-over-year to 2,613 square feet in May 2016. In April, the average size of new homes sold went from 2,959 square feet a year earlier to 2,428 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 21.5% of existing closings, lower than 31.9% a year earlier. The percentage of existing home closings involving foreclosures fell to 3.5% in May from 14.6% a year earlier and REO closings moved from 17.3% of existing home closings in May 2015 to 18.0% in May 2016.