Closings of new homes in the Dover, DE market fell year-over-year in February, and there were hints the market may be worsening with a percentage decline steeper than that of January 2016. Closings declined 35.0% from a year earlier to 26. This was after the housing market saw a 19.5% decline year-over-year in January.
A total of 561 new homes were sold during the 12 months that ended in February, down from 575 for the year that ended in January.
New home closings accounted for 16.7% of overall housing closings. This is down from the a year earlier when new home closings accounted for 25.6% of total closings. After declining in January from a year earlier, closings of new and existing homes remained level in February.
Pricing and Mortgage Trends
For newly sold homes, the average price climbed 4.0% year-over-year in February to $269,971 per unit. This surge follows a move from $261,755 per unit in January 2015 to $264,084 in January 2016.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. The average mortgage size saw a 15.4% bump year-over-year to $247,895 in February. Average mortgage size rose 11.7% in January 2016 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units gained from 10.0% of closings in February 2015 to 11.5% of closings in February 2016. At the same time, the share belonging to single-family homes sank to 88.5% of closings from 90.0% of closings.
There was a 31.7% fall year-over-year in the average unit size of newly sold homes to 1,568 square feet in February 2016. The average size of newly sold homes moved from 2,274 square feet in January 2015 to 2,686 square feet in January 2016.
Foreclosures and real estate owned (REO) closings decreased in February from a year earlier, but remained a burden on the market. Together, foreclosures plus REO closings represented 36.2% of existing home closings, down from 42.2% a year earlier. The percentage of existing home closings involving foreclosures went from 22.4% in February 2015 to 23.1% in February 2016 and REO closings as a percentage of existing home closings declined to 13.1% from 19.8% a year earlier.