New home closings in the Worcester, MA market slid year-over-year in July, and the decline was by a larger percentage than the June 2015. New home closings moved from 13 a year earlier to 1 after the figure moved from 11 in June 2014 to 4 in June 2015.
A total of 78 new homes were sold during the 12 months that ended in July, down from 90 for the year that ended in June.
New home closings represented 1 out of the 1,320 total closings, which is a smaller percentage than the 13 of 1,038 total closings a year earlier. For new and existing homes, closings climbed year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $538,918, an increase from $449,645 a year earlier. This was on the heels of a 5.9% fall in June from a year earlier.
Average mortgage size on new homes increased to $485,025 from $344,243 last year. Average mortgage size on new homes went from $383,813 in June 2014 to $348,500 in June 2015.
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 increased in July from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 14.1% of existing home closings, above 12.3% a year earlier. The percentage of existing home closings involving foreclosures went from 7.1% in July 2014 to 6.1% in July 2015 and REO closings as a percentage of existing home closings grew to 8.0% from 5.2%.