In the Cleveland, OH market in May, closings of new homes slid year-over-year, but the decline was less than the year-over-year decline in April. New home closings moved from 87 a year earlier to 15 after the figure moved from 63 in April 2015 to 9 in April 2016.
A total of 519 new homes were sold during the 12 months that ended in May, down from 591 for the year that ended in April.
New home closings made up 0.4% of overall housing closings. This is a fall 2.6% of closings a year earlier. Following a year-over-year increase in April, closings of new and existing homes also jumped year-over-year in May.
Pricing and Mortgage Trends
The average price of newly sold homes declined 13.4% year-over-year in May to $251,593 per unit. This decline is larger than the 10.4% drop in April from a year earlier.
For newly sold homes, the average mortgage size saw a fall year-over-year in contrast to new home prices. In May 2016, average mortgage size on new homes sold was $220,354, down 11.2% from a year earlier. Average mortgage size on new homes went from $218,898 in April 2015 to $233,425 in April 2016.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings grew from 83.9% of new closings in May 2015 to 86.7% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings slid to 13.3% of closings from 16.1% of closings.
There was a 16.0% fall year-over-year in the average unit size of newly sold homes to 1,910 square feet in May 2016. In April, the average size of new homes sold went from 2,153 square feet a year earlier to 1,665 square feet. A drop was also seen in April 2016 when the average size of new homes sold sank 22.7% to 1,665 square feet.
Foreclosures and real estate owned (REO) closings decreased in May from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, made up 30.4% of existing closings, lower than 35.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 17.4% in May from 19.2% a year earlier while REO closings as a percentage of existing home closings dropped to 13.0% from 16.2% a year earlier.