Closings of new homes sank year-over-year in May in the New York, NY market, and with a percentage fall steeper than April 2016, there were signals the market may be worsening. New home closings saw a fall of 2.0% from a year earlier to 544. This compares with the change from 535 in April 2015 to 555 in April 2016.
A total of 8,031 new homes were sold during the 12 months that ended in May, down from 8,042 for the year that ended in April.
Compared to a year earlier, new home closings as a percentage of total closings stayed the same at 4.4%. Following a year-over-year rise in April, closings of new and existing homes dropped year-over-year in May.
Pricing and Mortgage Trends
In May, the average price of newly sold homes climbed year-over-year to $1,301,196.00 per unit, a 60.6% bump. This surge is smaller than the 77.3% boost in April year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. Average mortgage size increased 43.8% to $723,514 in May from a year earlier. In April 2016, average mortgage size gained 53.9% 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 climbed from 58.7% of closings in May 2015 to 72.4% of closings in May 2016. Meanwhile, single-family home closings as a percentage of all new home closings fell to 27.6% of closings from 41.3% of closings.
The average unit size of newly sold homes slid 27.9% year-over-year to 1,773 square feet in May 2016. For newly sold homes, an average size decline contrasting with an average price rise was also seen in April 2016 when the average size of newly sold homes sank 23.0% to 1,906 square feet. In April, the average size of new homes sold went from 2,476 square feet a year earlier to 1,906 square feet.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 18.1% of existing home closings, higher than 17.1% a year earlier. The percentage of existing home closings involving foreclosures went from 10.4% in May 2015 to 9.9% in May 2016 and REO closings as a percentage of existing home closings grew to 8.3% from 6.7%.