New home closings in the Cincinnati, OH market sank year-over-year in January, and the percentage decline, which was steeper than December 2015, gave suggestions that the market may be worsening. New home closings saw a drop of 86.6% from the year earlier to 16. This was after the housing market saw a 70.4% fall year-over-year in December.
A total of 1,398 new homes were sold during the 12 months that ended in January, down from 1,501 for the year that ended in December.
Out of all housing closings, new home closings accounted for 1.0%. This is a drop 5.4% of closings a year earlier. After rising year-over-year in December, closings of new and existing homes declined year-over-year in January.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes grew year-over-year to $353,278 in January, up 13.1% from last year. This lift is an improvement over the 12.9% gain in December year-over-year.
For newly sold homes, the average mortgage size climbed year-over-year along with new home prices. In January 2016, the average mortgage size was $356,005, up 42.0% from a year earlier. In December 2015, average mortgage size on newly sold homes saw a 13.0% bump year-over-year from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 86.6% of new home closings to 87.5% of closings while attached units have gone from 13.4% of closings to 12.5% of closings.
There was a 9.9% decline year-over-year in the average unit size of newly sold homes to 2,356 square feet in January 2016. For newly sold homes, an average size decline contrasting with an average price gain was also seen in December 2015 when the average size of newly sold homes dropped 15.3% to 2,145 square feet. The average size of newly sold homes moved from 2,533 square feet in December 2014 to 2,145 square feet in December 2015.
Foreclosures and real estate owned (REO) closings fell in January from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings accounted for 30.1% of existing home closings, below 37.3% a year earlier. The percentage of existing home closings involving foreclosures declined to 11.3% in January from 17.6% a year earlier and REO closings moved from 19.7% of existing home closings in January 2015 to 18.8% in January 2016.