In the Cincinnati, OH market, closings of new homes dropped year-over-year in February, but there were signs the market may be evening out with a percentage fall less steep as in January 2016. Closings declined 70.5% from a year earlier to 46. This followed a 83.8% decline year-over-year in January.
A total of 1,418 new homes were sold during the 12 months that ended in February, down from 1,528 for the year that ended in January.
New home closings accounted for 2.0% of overall housing closings. This is down from the 6.5% of closings a year earlier. Closings of new and existing homes dropped year-over-year in February after also falling in January year-over-year.
Pricing and Mortgage Trends
In February, the average price of newly sold homes increased year-over-year to $313,907 per unit, a 5.7% boost. This lift is smaller than the 18.2% surge in January year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. It climbed to $273,608 in February, a 9.0% bump. Average mortgage size rose 34.0% in January 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from 91.0% in February 2015 to 93.5% of closings in February 2016. Conversely, the share of new home closings belonging to attached units sank to 6.5% of closings from 9.0% of closings.
There was a 16.9% decline year-over-year in the average unit size of newly sold homes to 2,255 square feet in February 2016. For newly sold homes, an average size decline contrasting with an average price hike was also seen in January 2016 when the average size of newly sold homes slid 17.6% to 2,143 square feet. In January, the average size of new homes sold went from 2,600 square feet a year earlier to 2,143 square feet.
Foreclosures and real estate owned (REO) closings declined in February from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings made up 27.4% of existing home closings, below 30.5% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.2% in February from 11.4% a year earlier while REO closings as a percentage of existing home closings fell to 17.2% from 19.1% a year earlier.