Closings of new homes in the Washington, DC market fell year-over-year in March, a shift downward off a gain in February 2016. There was a 7.1% decline in new home closings from a year earlier. This was after the housing market saw a 4.7% jump year-over-year in February.
A total of 11,037 new homes were sold during the 12 months that ended in March, down from 11,100 for the year that ended in February.
As a percentage of overall housing closings, new home closings made up 11.2% of overall housing closings. As a part of the whole, new home closings were 11.7% a year earlier. Following a year-over-year increase in February, closings of new and existing homes fell year-over-year in March.
Pricing and Mortgage Trends
In March, there was a 2.2% fall year-over-year in the average per-unit price of newly sold homes, settling at $522,122. This drop is a drop off from the 2.7% decline in February from a year earlier.
For newly sold homes, the average mortgage size sank year-over-year in contrast to average price of new homes. It dropped to $443,255 in March, a 2.0% drop. In February 2016, average mortgage size on newly sold homes saw a 1.7% drop from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes grew from 46.0% in March 2015 to 48.2% of closings in March 2016. At the same time, the share of new home closings belonging to attached units declined to 51.8% of closings from 54.0% of closings.
The average unit size of newly sold homes slid 11.7% year-over-year to 2,722 square feet in March 2016. A decrease in both the average size and price of newly sold homes was also seen in February 2016 when the average size rose 11.1% to 2,776 square feet. The average size of newly sold homes moved from 3,122 square feet in February 2015 to 2,776 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 18.1% of existing closings, lower than 20.4% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.0% in March from 8.8% a year earlier and REO closings moved from 11.6% of existing home closings in March 2015 to 11.1% in March 2016.