The Hagerstown, MD market saw a drop in new home closings year-over-year in February, declining after staying relatively stable in January from the year earlier. Closings stood at 7 in February after being 8 a year earlier and remaining unchanged at 8 in January from a year earlier.

A total of 136 new homes were sold during the 12 months that ended in February, down from 137 for the year that ended in January.

7 of the 159 total closings were new home closings, a shift on a percentage basis from 8 out of 153 a year earlier. Closings of new and existing homes gained year-over-year in February following a drop in January year-over-year.

Pricing and Mortgage Trends

The average price for newly sold homes moved north to $328,890 from $278,723 a year ago. This came after a 8.0% gain in January year-over-year.

From the year-ago figure of $269,257, the average mortgage size on new homes moved up to $288,604. Average mortgage size on new homes went from $243,551 in January 2015 to $280,108 in January 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.

The average unit size of newly sold homes fell from 2,456 square feet a year earlier to 2,031 square feet.

Foreclosures and real estate owned (REO) closings continued to increase in February from a year earlier and remained a burden on the market. Combined, foreclosures plus REO closings accounted for 52.6% of existing home closings, above 49.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 17.8% in February from 21.4% a year earlier while REO closings as a percentage of existing home closings grew to 34.9% from 27.6%.

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