Closings of new homes in the Boston, MA market slid year-over-year in May, and the market seemed to be worsening in light of the percentage fall steeper than April 2016. Closings slid 78.6% from a year earlier to 24. This came on the heels of a 64.3% decline year-over-year in April.
A total of 974 new homes were sold during the 12 months that ended in May, down from 1,062 for the year that ended in April.
Out of all housing closings, new home closings made up 0.4%. This is down from the a year earlier when new home closings accounted for 1.9% of total closings. Following a year-over-year increase in April, closings of new and existing homes also grew year-over-year in May.
Pricing and Mortgage Trends
For newly sold homes, the average price fell 9.9% year-over-year in May to $505,522 per unit. This fall is a drop off from the 15.5% drop in April from a year earlier.
Average mortgage size on new homes saw a decline year-over-year in contrast to prices of new homes. It slid 28.0% in May from a year earlier to $324,467. In April 2016, average mortgage size on newly sold homes saw a 15.5% drop from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units rose from 40.2% of closings in May 2015 to 54.2% of closings in May 2016. Conversely, the share belonging to single-family homes dropped to 45.8% of closings from 59.8% of closings.
For all new homes sold, the average unit size fell 10.2% year-over-year to 2,105 square feet in May 2016. In April, the average size of new homes sold went from 2,387 square feet a year earlier to 1,901 square feet. A decline was also seen in April 2016 when the average size of new homes sold sank 20.4% to 1,901 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 12.2% of closings, below 13.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.2% in May from 6.4% a year earlier and REO closings moved from 6.7% of existing home closings in May 2015 to 6.9% in May 2016.