In the New York, NY market, closings of new homes declined year-over-year in August, and there were suggestions of weakening market conditions with a percentage drop steeper than that of July 2015. New home closings saw a 36.3% drop from a year earlier to 351. This came after a 26.1% fall year-over-year in July.
A total of 5,446 new homes were sold during the 12 months that ended in August, down from 5,646 for the year that ended in July.
New home closings accounted for 2.6% of overall housing closings. This is down from the 3.7% of closings a year earlier. Following a year-over-year rise in July, closings of new and existing homes dropped year-over-year in August.
Pricing and Mortgage Trends
The average price of new homes was $754,203 per unit in August, up 12.8%from a year earlier. This bump is smaller than the 20.2% surge in July year-over-year.
For newly sold homes, the average mortgage size saw a boost year-over-year along with new home prices. In August 2015, there was a 22.3% lift in the average mortgage size, reaching $527,476. In July 2015, average mortgage size on newly sold homes saw a 12.0% boost year-over-year 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 gained from 47.5% in August 2014 to 49.6% of closings in August 2015. Conversely, the share of new home closings belonging to attached units declined to 50.4% of closings from 52.5% of closings.
For all new homes sold, the average unit size slid 19.7% year-over-year to 1,850 square feet in August 2015. In July, the average size of new homes sold went from 2,268 square feet a year earlier to 2,253 square feet.
Foreclosures and real estate owned (REO) closings rose in August from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 12.6% of existing home closings, above 12.1% a year earlier. The percentage of existing home closings involving foreclosures went from 7.3% in August 2014 to 7.1% in August 2015 and REO closings moved from 4.8% of existing home closings in August 2014 to 5.5% in August 2015.