In the Boston, MA market, new home closings fell year-over-year in March, but the percentage fall was less than that of February 2016, hinting that the market may be strengthening. New home closings saw a 50.9% decline from a year earlier to 55. This followed a 62.8% drop year-over-year in February.
A total of 1,104 new homes were sold during the 12 months that ended in March, down from 1,161 for the year that ended in February.
Out of all housing closings, new home closings made up 1.3%. This is down from the 3.0% of closings a year earlier. Closings of new and existing homes increased year-over-year in March after also rising in February year-over-year.
Pricing and Mortgage Trends
The average price of new homes declined by 2.5% year-over-year to $617,040 per unit in March. This drop is larger than the 1.9% fall in February from a year earlier.
For newly sold homes, the average mortgage size slid year-over-year in contrast to average price of new homes. In March 2016, there was a 18.2% fall in the average mortgage size on new homes to $407,495. In February 2016, average mortgage size fell 13.8% 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. The share of new home closings belonging to attached units rose from 27.7% of closings in March 2015 to 65.5% of closings in March 2016. Meanwhile, single-family home closings as a percentage of all new home closings slid to 34.5% of closings from 72.3% of closings.
There was a 23.5% drop year-over-year in the average unit size of newly sold homes to 1,896 square feet in March 2016. The average size of newly sold homes moved from 2,507 square feet in February 2015 to 2,600 square feet in February 2016.
Out of all existing home closings, foreclosures combined with REO closings represented 19.0% of closings. They made up 19.0% in March 2015. The percentage of existing home closings involving foreclosures dropped to 8.8% in March from 10.1% a year earlier while REO closings as a percentage of existing home closings grew to 10.3% from 8.9%.