New home closings fell year-over-year in January in the Worcester, MA market, but the decline was less than the year-over-year decline in December. New home closings moved from 14 a year earlier to 8 after the figure moved from 13 in December 2014 to 4 in December 2015.
A total of 119 new homes were sold during the 12 months that ended in January, down from 125 for the year that ended in December.
Last year, 14 of 611 total closings were new homes, and this percentage saw a decline as new home closings this year made up 8 of the 656 total closings. For new and existing homes, closings rose year-over-year in January after also increasing in December year-over-year.
Pricing and Mortgage Trends
The average new home price was $314,627, down from $434,427 a year earlier. This came after a 13.2% hike in December year-over-year.
There was a decline in average mortgage size on new homes, going from $292,982 last year to $269,066 in January 2016. Average mortgage size on new homes went from $313,128 in December 2014 to $428,641 in December 2015.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
The average unit size of newly sold homes fell from 2,206 square feet a year earlier to 1,673 square feet.
Foreclosures and real estate owned (REO) closings increased in January from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 24.5% of existing home closings, above 23.3% a year earlier. The percentage of existing home closings involving foreclosures went from 10.7% in January 2015 to 10.3% in January 2016 and REO closings as a percentage of existing home closings increased to 14.2% from 12.6%.