In October, the New York, NY market saw a decline year-over-year in new home closings, and the percentage fall was more severe than September 2015, indicating the market may be worsening. New home closings saw a 40.3% decline from a year earlier to 368. This came on the heels of a 30.7% decline year-over-year in September.
A total of 5,187 new homes were sold during the 12 months that ended in October, down from 5,435 for the year that ended in September.
As a percentage of overall housing closings, new home closings made up 2.9%. This is down from the a year earlier when new home closings made up 4.4% of total closings. Following a year-over-year decline in September, closings of new and existing homes also declined year-over-year in October.
Pricing and Mortgage Trends
In October, the average price of newly sold homes climbed year-over-year to $739,532 per unit, a 6.2% boost. This gain compares to a 8.0% decline in September from a year earlier.
For newly sold homes, the average mortgage size grew year-over-year along with new home prices. In October 2015, there was a 16.1% hike in the average mortgage size, reaching $479,031. Average mortgage size grew 7.6% in September 2015 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. Single-family home closings rose from 45.5% of new closings in October 2014 to 46.7% of closings in October 2015. Conversely, the share of new home closings belonging to attached units sank to 53.3% of closings from 54.5% of closings.
For all new homes sold, the average unit size dropped 14.8% year-over-year to 1,773 square feet in October 2015. The average size of newly sold homes moved from 2,195 square feet in September 2014 to 1,884 square feet in September 2015.
Foreclosures and real estate owned (REO) closings staying steady in October from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 14.9% of existing closings, about the same as a year earlier The percentage of existing home closings involving foreclosures went from 8.9% in October 2014 to 8.2% in October 2015 and REO closings moved from 6.0% of existing home closings in October 2014 to 6.6% in October 2015.