In June, the Washington, DC market saw a decline year-over-year in new home closings, and the market seemed to be weakening with a percentage drop steeper than in May 2016. Closings fell 10.9% from a year earlier to 951. This came on the heels of a 1.5% fall year-over-year in May.
A total of 11,078 new homes were sold during the 12 months that ended in June, down from 11,194 for the year that ended in May.
Out of all housing closings, new home closings accounted for 9.8%. New home closings were 9.6% of overall closings last year. Following a year-over-year rise in May, closings of new and existing homes fell year-over-year in June.
Pricing and Mortgage Trends
For newly sold homes, the average price grew 3.9% year-over-year in June to $549,493 per unit. This surge compares to a 10.8% drop in May from a year earlier.
For newly sold homes, the average mortgage size saw a hike year-over-year along with new home prices. In June 2016, average mortgage size jumped 3.0% from a year earlier to $461,642. Average mortgage size sank 7.1% in May 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings rose from 45.9% of new closings in June 2015 to 50.2% of closings in June 2016. At the same time, the share of new home closings belonging to attached units declined to 49.8% of closings from 54.1% of closings.
For all new homes sold, the average unit size declined 1.2% year-over-year to 2,855 square feet in June 2016. The average size of newly sold homes moved from 3,056 square feet in May 2015 to 2,429 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 11.6% of existing closings, lower than 13.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.5% in June from 6.1% a year earlier and REO closings moved from 7.7% of existing home closings in June 2015 to 7.1% in June 2016.