In the Baltimore, MD market in June, closings of new homes declined year-over-year, and there were hints of weakening market conditions with a percentage fall steeper than that of May 2016. Closings sank 34.5% from a year earlier to 272. This was after the housing market saw a 20.3% drop year-over-year in May.
A total of 3,608 new homes were sold during the 12 months that ended in June, down from 3,751 for the year that ended in May.
Of the total number of closings, new home closings made up 6.8%. New home closings were 7.6% of overall closings last year. Following a year-over-year rise in May, closings of new and existing homes sank year-over-year in June.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $469,786 in June, up 2.3% from last year. This lift is smaller than the 3.2% boost in May year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In June 2016, the average mortgage size was $398,090, up 1.7% from a year earlier. Average mortgage size grew 2.3% in May 2016 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 42.9% of new closings in June 2015 to 48.5% of closings in June 2016. Conversely, the share of new home closings belonging to attached units slid to 51.5% of closings from 57.1% of closings.
There was a 18.1% decline year-over-year in the average unit size of newly sold homes to 2,262 square feet in June 2016. This fall was opposite the price bump, a pattern also seen in May 2016 when the average size of newly sold homes dropped 7.0% to 2,604 square feet. The average size of newly sold homes moved from 2,800 square feet in May 2015 to 2,604 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 16.2% of existing closings, lower than 29.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.7% in June from 14.6% a year earlier while REO closings as a percentage of existing home closings slid to 12.5% from 14.3% a year earlier.