The Columbus, OH market saw a drop in new home closings year-over-year in May, but the percentage decline narrowed from that of April 2016, suggesting that the market may be leveling out. New home closings saw a 23.2% decline from a year earlier to 142. This came on the heels of a 38.1% fall year-over-year in April.
A total of 2,204 new homes were sold during the 12 months that ended in May, down from 2,247 for the year that ended in April.
Out of all housing closings, new home closings represented 3.6%. This is down from the a year earlier when new home closings accounted for 5.4% of total closings. Closings of new and existing homes increased in May after staying steady in April from a year earlier.
Pricing and Mortgage Trends
In May, there was a 6.7% hike year-over-year in the average price of newly sold homes, reaching $346,064 per unit. This bump is better than the 1.9% surge in April year-over-year.
There was a gain year-over-year in the average mortgage size on new homes along with new home prices. In May 2016, there was a 6.0% lift in the average mortgage size, reaching $278,325. In April 2016, average mortgage size on newly sold homes saw a 1.2% boost year-over-year 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. The share of new home closings belonging to single-family homes jumped from 76.2% in May 2015 to 80.3% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings declined to 19.7% of closings from 23.8% of closings.
There was a 2.8% bump year-over-year in the average unit size of newly sold homes to 2,684 square feet in May 2016. An increase in both the average size and price of newly sold homes was also seen in April 2016 when the average size jumped 3.6% to 2,582 square feet. The average size of newly sold homes moved from 2,493 square feet in April 2015 to 2,582 square feet in April 2016.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings made up 16.8% of existing home closings, up from 15.6% a year earlier. The percentage of existing home closings involving foreclosures rose to 9.3% in May from 6.0% a year earlier while REO closings as a percentage of existing home closings fell to 7.5% from 9.6% a year earlier.