New home closings dropped year-over-year in May in the Winchester, VA market, and the percentage drop that was steeper than April 2016 gave implications of worsening market conditions. New home closings saw a 50.0% fall from a year earlier to 15. This came on the heels of a 7.4% fall year-over-year in April.
A total of 367 new homes were sold during the 12 months that ended in May, down from 382 for the year that ended in April.
Out of all housing closings, new home closings made up 11.5%. This is down from the 15.9% of closings a year earlier. Closings of new and existing homes fell year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
In May, the average value of new homes saw a 6.0% bump year-over-year as it grew to $347,749 per unit. This boost is smaller than the 10.2% surge in April year-over-year.
There was a gain year-over-year in the average mortgage size on new homes along with new home prices. Average mortgage size jumped 4.6% to $307,272 in May from a year earlier. Average mortgage size increased 11.4% in April 2016 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings grew from 63.3% of new closings in May 2015 to 86.7% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings fell to 13.3% of closings from 36.7% of closings.
For all new homes sold, the average unit size declined 5.1% year-over-year to 2,733 square feet in May 2016. This decline was opposite the price gain, a pattern also seen in April 2016 when the average size of newly sold homes slid 3.5% to 2,711 square feet. In April, the average size of new homes sold went from 2,809 square feet a year earlier to 2,711 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 9.5% of existing home closings, down from 22.0% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.2% in May from 8.2% a year earlier while REO closings as a percentage of existing home closings dropped to 4.3% from 13.8% a year earlier.