Closings of new homes fell year-over-year in February in the Worcester, MA market, and the decline was by a larger percentage than the January 2016. New home closings moved from 26 a year earlier to 1 after the figure moved from 16 in January 2015 to 10 in January 2016.
A total of 146 new homes were sold during the 12 months that ended in February, down from 171 for the year that ended in January.
Last year, 26 of 596 total closings were new homes, and this percentage saw a decline as new home closings this year made up 1 of the 843 total closings. Following a year-over-year increase in January, closings of new and existing homes also jumped year-over-year in February.
Pricing and Mortgage Trends
The average price of new homes was $438,458, an increase from $411,194 a year earlier. This came after a 20.1% fall in January from a year earlier.
Average mortgage size on new homes increased to $411,000 from $314,341 last year. Average mortgage size on new homes went from $329,887 in January 2015 to $314,758 in January 2016.
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.
Foreclosures and real estate owned (REO) closings continued to increase in February from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, represented 26.7% of existing home closings, higher than 24.6% a year earlier. The percentage of existing home closings involving foreclosures went from 12.8% in February 2015 to 13.4% in February 2016 and REO closings as a percentage of existing home closings climbed to 13.3% from 11.8%.