In May, closings of new homes grew year-over-year in the Ocean City, NJ market, and the increase was greater than April 2016. New home closings moved from 3 a year earlier to 4 after the figure moved from 5 in April 2015 to 6 in April 2016.
A total of 85 new homes were sold during the 12 months that ended in May, up from 84 for the year that ended in April.
New home closings were 4 out of the 405 total closings, a move on a percentage basis from 3 of 429 a year earlier. Following a year-over-year rise in April, closings of new and existing homes fell year-over-year in May.
Pricing and Mortgage Trends
The average new home price was $570,925, down from $588,333 a year earlier. This was on the heels of a 5.6% surge in April year-over-year.
Average mortgage size on new homes fell from $606,000 to $432,133. Average mortgage size on new homes went from $549,225 in April 2015 to $312,258 in April 2016.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
Foreclosures and real estate owned (REO) closings rose in May from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 19.5% of existing home closings, up from 8.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 10.7% in May from 5.6% a year earlier while REO closings as a percentage of existing home closings increased to 8.7% from 3.3%.