In August, the Dover, DE market saw a drop year-over-year in new home closings, and the market seemed to be worsening in light of the percentage decline steeper than July 2015. Closings sank 24.1% from a year earlier to 41. This came after a 9.5% decline year-over-year in July.
A total of 607 new homes were sold during the 12 months that ended in August, down from 620 for the year that ended in July.
New home closings made up 15.5% of overall housing closings. This is down from the 22.9% of closings a year earlier. Closings of new and existing homes rose year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
In August, the average value of new homes saw a 19.1% bump year-over-year as it grew to $274,633 per unit. This gain is higher than the 6.3% surge in July year-over-year.
The average mortgage size on newly sold homes rose year-over-year along with the average price of new homes. In August 2015, the average mortgage size was $242,988, a 16.7% gain from a year earlier. Average mortgage size gained 11.0% in July 2015 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. The share of new home closings belonging to attached units grew from 13.0% of closings in August 2014 to 14.6% of closings in August 2015. At the same time, the share belonging to single-family homes slid to 85.4% of closings from 87.0% of closings.
The average unit size of newly sold homes rose 2.7% year-over-year to 2,214 square feet in August 2015. The average size of newly sold homes moved from 2,271 square feet in July 2014 to 2,205 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 23.7% of existing closings, lower than 31.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 12.1% in August from 16.5% a year earlier while REO closings as a percentage of existing home closings dropped to 11.6% from 15.4% a year earlier.