New home closings slid year-over-year in June in the Oklahoma City, OK market, and there were hints the market may be worsening with a percentage drop steeper than that of May 2016. New home closings saw a 39.2% decline from a year earlier to 237. In comparison, new home closings in the same month last year saw a 31.9% drop year-over-year in May.
A total of 3,184 new homes were sold during the 12 months that ended in June, down from 3,337 for the year that ended in May.
Out of all housing closings, new home closings made up 8.3%. This is a fall 12.6% of closings a year earlier. Closings of new and existing homes saw a decline year-over-year in June after remaining steady in May year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes increased year-over-year to $268,960 in June, up 3.5% from last year. This surge is smaller than the 13.8% gain in May year-over-year.
The average mortgage size on newly sold homes saw a bump year-over-year along with new home prices. In June 2016, the average mortgage size on newly sold homes saw a 3.3% rise from a year earlier. In May 2016, average mortgage size climbed 13.0% from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 99.5% of new home closings to 98.7% of closings while attached units have gone from 0.5% of closings to 1.3% of closings.
For all new homes sold, the average unit size increased 1.9% year-over-year to 2,166 square feet in June 2016. An increase was also seen in May 2016 when the average size of new homes sold increased 14.9% to 2,361 square feet. The average size of newly sold homes moved from 2,054 square feet in May 2015 to 2,361 square feet in May 2016.
Foreclosures and real estate owned (REO) closings increased in June from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 22.2% of existing home closings, up from 21.2% a year earlier. The percentage of existing home closings involving foreclosures slid to 4.7% in June from 7.9% a year earlier while REO closings as a percentage of existing home closings jumped to 17.5% from 13.3%.