New home closings sank year-over-year in May in the Cincinnati, OH market, and there were suggestions of weakening market conditions with a percentage drop steeper than that of April 2016. There was a 74.3% decline in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 67.5% drop year-over-year in April.
A total of 1,205 new homes were sold during the 12 months that ended in May, down from 1,306 for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 1.0%. This is down from the 3.7% of closings a year earlier. For new and existing homes, closings sank in May after also declining in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year 6.9% in May to $346,808 per unit. This bump compares to a 1.3% drop in April from a year earlier.
The average mortgage size on newly sold homes saw a lift year-over-year along with new home prices. In May 2016, the average mortgage size was $285,692, a 22.0% boost from a year earlier. In April 2016, average mortgage size grew 8.5% 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 jumped from 11.8% of closings in May 2015 to 20.0% of closings in May 2016. Conversely, the share belonging to single-family homes fell to 80.0% of closings from 88.2% of closings.
For all new homes sold, the average unit size sank 6.8% year-over-year to 2,055 square feet in May 2016. In April, the average size of new homes sold went from 2,337 square feet a year earlier to 1,960 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 19.0% of existing closings, lower than 21.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.7% in May from 10.2% a year earlier while REO closings as a percentage of existing home closings declined to 10.3% from 11.4% a year earlier.