In the Cincinnati, OH market in July, closings of new homes dropped year-over-year, and the percentage drop was more severe than June 2015, indicating the market may be worsening. There was a 78.9% drop in new home closings from a year earlier. This was after the housing market saw a 78.1% fall year-over-year in June.
A total of 1,022 new homes were sold during the 12 months that ended in July, down from 1,164 for the year that ended in June.
Out of all housing closings, new home closings represented 1.2%. This is down from the 4.6% of closings a year earlier. Closings of new and existing homes sank year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes gained year-over-year to $319,742 in July, up 11.8% from last year. This boost compares to a 7.2% drop in June from a year earlier.
Average mortgage size on new homes grew year-over-year along with new home prices. In July 2015, average mortgage size increased 13.3% from a year earlier to $260,473. In June 2015, average mortgage size jumped 5.1% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings climbed from 91.1% of new closings in July 2014 to 94.7% of closings in July 2015. At the same time, the share of new home closings belonging to attached units declined to 5.3% of closings from 8.9% of closings.
There was a 12.7% decline year-over-year in the average unit size of newly sold homes to 1,766 square feet in July 2015. The average size of newly sold homes moved from 2,271 square feet in June 2014 to 2,193 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 20.2% of existing home closings, below 25.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 8.0% in July from 13.0% a year earlier and REO closings moved from 12.8% of existing home closings in July 2014 to 12.2% in July 2015.