Closings of new homes sank year-over-year in June in the Cincinnati, OH market, but the percentage fall was not as steep as May 2015, suggesting market improvement. New home closings saw a drop of 82.8% from the year earlier to 29. In comparison, new home closings in the same month last year saw a 87.0% decline year-over-year in May.
A total of 1,141 new homes were sold during the 12 months that ended in June, down from 1,281 for the year that ended in May.
New home closings represented 0.8% of overall housing closings. This is down from the a year earlier when new home closings made up 4.3% of total closings. Closings of new and existing homes dropped year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $296,185 per unit in June, up 2.6%from a year earlier. This surge is smaller than the 33.9% boost in May year-over-year.
The average mortgage size on newly sold homes jumped year-over-year along with the average price of new homes. Average mortgage size rose 5.1% to $236,871 in June from a year earlier. In May 2015, average mortgage size on newly sold homes saw a 20.5% hike year-over-year 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 grew from 87.6% of new closings in June 2014 to all of closings in June 2015. At the same time, the share of new home closings belonging to attached units sank to no part of closings from 12.4% of closings.
The average unit size of newly sold homes went from 2,271 square feet in June 2014 to 2,259 square feet in June 2015. In May 2015, the average size of newly sold homes dropped 37.0% from the year earlier. The average size of newly sold homes moved from 2,600 square feet in May 2014 to 1,638 square feet in May 2015.
Foreclosures and real estate owned (REO) closings rose in June from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 23.0% of existing home closings, higher than 22.6% a year earlier. The percentage of existing home closings involving foreclosures went from 10.6% in June 2014 to 11.4% in June 2015 and REO closings moved from 12.0% of existing home closings in June 2014 to 11.6% in June 2015.