In March, the Cincinnati, OH market saw a fall year-over-year in new home closings, but the drop in percentage terms was not as steep as February 2016, signaling that the market may be stabilizing. Closings fell 65.1% from a year earlier to 61. This came on the heels of a 66.7% drop year-over-year in February.
A total of 1,400 new homes were sold during the 12 months that ended in March, down from 1,514 for the year that ended in February.
As a percentage of overall housing closings, new home closings represented 2.2%. This is down from the 5.5% of closings a year earlier. For new and existing homes, closings sank in March after also declining in February year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 12.1% boost year-over-year in March to $322,085 per unit. This hike is an improvement over the 3.2% surge in February year-over-year.
There was a gain year-over-year in the average mortgage size on new homes along with new home prices. In March 2016, there was a 11.0% bump in the average mortgage size, reaching $251,781. In February 2016, average mortgage size on newly sold homes saw a 5.3% rise year-over-year 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. The share of new home closings belonging to single-family homes rose from 82.9% in March 2015 to 91.8% of closings in March 2016. At the same time, the share of new home closings belonging to attached units dropped to 8.2% of closings from 17.1% of closings.
The average unit size of newly sold homes gained 12.6% year-over-year to 2,745 square feet in March 2016. The average size of newly sold homes moved from 2,712 square feet in February 2015 to 2,255 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in March, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 23.4% of existing home closings, below 26.6% a year earlier. The percentage of existing home closings involving foreclosures went from 10.7% in March 2015 to 10.1% in March 2016 and REO closings as a percentage of existing home closings fell to 13.4% from 15.9% a year earlier.