In July, there was a fall year-over-year in new home closings in the New York, NY market, and there were signs of weakening market conditions with a percentage drop steeper than that of June 2015. There was a 31.3% decline in new home closings from a year earlier. This came on the heels of a 17.5% drop year-over-year in June.
A total of 5,267 new homes were sold during the 12 months that ended in July, down from 5,451 for the year that ended in June.
As a percentage of overall housing closings, new home closings made up 2.8%. This is down from the 3.8% of closings a year earlier. Following a year-over-year rise in June, closings of new and existing homes sank year-over-year in July.
Pricing and Mortgage Trends
In July, the average value of new homes saw a 19.6% rise year-over-year as it grew to $759,738 per unit. This surge is smaller than the 22.1% hike in June year-over-year.
There was a lift year-over-year in the average mortgage size on new homes along with new home prices. In July 2015, there was a 10.7% lift in the average mortgage size, reaching $502,633. In June 2015, average mortgage size climbed 24.8% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units rose from 48.8% of closings in July 2014 to 55.4% of closings in July 2015. At the same time, the share belonging to single-family homes dropped to 44.6% of closings from 51.2% of closings.
The average unit size of newly sold homes fell 9.6% year-over-year to 2,051 square feet in July 2015. This fall was opposite the price rise, a pattern also seen in June 2015 when the average size of newly sold homes declined 3.4% to 2,210 square feet. The average size of newly sold homes moved from 2,288 square feet in June 2014 to 2,210 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 12.2% of existing home closings, down from 12.4% a year earlier. The percentage of existing home closings involving foreclosures slid to 6.6% in July from 7.7% a year earlier while REO closings as a percentage of existing home closings grew to 5.6% from 4.6%.