In June, there was a drop year-over-year in new home closings in the Columbus, OH market, and the percentage decline was more severe than May 2015, indicating the market may be worsening. New home closings saw a fall of 53.8% from the year earlier to 97. This came on the heels of a 53.7% fall year-over-year in May.
A total of 1,918 new homes were sold during the 12 months that ended in June, down from 2,031 for the year that ended in May.
New home closings accounted for 2.5% of overall housing closings. This is a drop 5.4% of closings a year earlier. Closings of new and existing homes stayed level after declining in May year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes rose year-over-year to $313,936 in June, up 3.9% from last year. This rise is smaller than the 30.1% boost in May year-over-year.
In June 2015, average mortgage size on new homes went from $258,154 in June 2014 to $259,766 in June 2015. In May 2015, average mortgage size gained 17.0% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings climbed from 19.5% of all closings in June 2014 to 24.7% of closings in June 2015. Meanwhile, single-family home closings as a percentage of all new home closings fell to 75.3% of closings from 80.5% of closings.
For all new homes sold, the average unit size dropped 19.6% year-over-year to 2,246 square feet in June 2015. For newly sold homes, an average size fall contrasting with an average price lift was also seen in May 2015 when the average size of newly sold homes declined 18.3% to 2,035 square feet. The average size of newly sold homes moved from 2,490 square feet in May 2014 to 2,035 square feet in May 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 16.2% of closings, below 19.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 5.5% in June from 11.2% a year earlier while REO closings as a percentage of existing home closings increased to 10.8% from 8.6%.