The Boston, MA market saw a drop in new home closings year-over-year in April, and the market seemed to be worsening in light of the percentage decline steeper than March 2016. Closings slumped 70.7% from a year earlier to 34. This came after a 50.9% fall year-over-year in March.
A total of 1,022 new homes were sold during the 12 months that ended in April, down from 1,104 for the year that ended in March.
New home closings made up 0.7% of overall housing closings. This is a drop 2.6% of closings a year earlier. For new and existing homes, closings grew year-over-year in April after also increasing in March year-over-year.
Pricing and Mortgage Trends
The average per-unit value of new homes fell year-over-year to $479,313 in April, a fall of 20.6% from a year earlier. This decline is larger than the 2.5% drop in March from a year earlier.
For newly sold homes, the average mortgage size saw a drop year-over-year in contrast to new home prices. Average mortgage size fell 26.7% to $323,186 in April from a year earlier. In March 2016, average mortgage size fell 18.2% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units jumped from 42.2% of closings in April 2015 to 82.4% of closings in April 2016. Conversely, the share belonging to single-family homes sank to 17.6% of closings from 57.8% of closings.
There was a 28.0% fall year-over-year in the average unit size of newly sold homes to 1,719 square feet in April 2016. A drop was also seen in March 2016 when the average size of new homes sold fell 23.5% to 1,896 square feet. The average size of newly sold homes moved from 2,480 square feet in March 2015 to 1,896 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 14.0% of existing home closings, down from 16.5% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.9% in April from 9.3% a year earlier and REO closings moved from 7.3% of existing home closings in April 2015 to 7.1% in April 2016.