Ocean City, NJ - Newest Figures for New Home Sales Suggest Market Decrease is Mounting
Posted on: Feb 06, 2012 09:33:42 AM
In October, there was a drop year-over-year in new home sales in the Ocean City, NJ market, and there were signals of weakening market conditions with a percentage fall steeper than that of September 2011. Sales fell 38.5% from a year earlier to 16. This came after an 8.7% decline year-over-year in September.
A total of 209 new homes were sold during the 12 months that ended in October, down from 219 for the year that ended in September.
As a percentage of overall housing sales, new home sales accounted for 7.5%, less than the 9.4% of sales a year earlier. Following a year-over-year rise in September, sales of new and existing homes fell year-over-year in October.
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Pricing and Mortgage Trends
The average price of new homes dropped by 34.5% year-over-year to $390,195 per unit in October. This drop is larger than the 17.2% decline in September from a year earlier.
In contrast to new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. Average mortgage size rose 46.1% to $339,923 in October from a year earlier. Average mortgage size dipped 4.1% in September 2011 from a year earlier. The overall percentage of sale price that was being financed gained 48.1 percentage points year-over-year to 87.1% in October 2011. This was another rise after September 2011 when there was a 9.2 percentage point rise from a year earlier.
Ocean City, NJ - Newest Figures for New Home Sales Suggest Market Decrease is Mounting
Posted on: Feb 06, 2012 09:33:42 AM
In October, there was a drop year-over-year in new home sales in the Ocean City, NJ market, and there were signals of weakening market conditions with a percentage fall steeper than that of September 2011. Sales fell 38.5% from a year earlier to 16. This came after an 8.7% decline year-over-year in September.
A total of 209 new homes were sold during the 12 months that ended in October, down from 219 for the year that ended in September.
As a percentage of overall housing sales, new home sales accounted for 7.5%, less than the 9.4% of sales a year earlier. Following a year-over-year rise in September, sales of new and existing homes fell year-over-year in October.
Pricing and Mortgage Trends
The average price of new homes dropped by 34.5% year-over-year to $390,195 per unit in October. This drop is larger than the 17.2% decline in September from a year earlier.
In contrast to new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. Average mortgage size rose 46.1% to $339,923 in October from a year earlier. Average mortgage size dipped 4.1% in September 2011 from a year earlier. The overall percentage of sale price that was being financed gained 48.1 percentage points year-over-year to 87.1% in October 2011. This was another rise after September 2011 when there was a 9.2 percentage point rise from a year earlier.
Other Market Trends
As a share of new home sales, single-family home sales have climbed from last year while the share belonging to attached units has fallen. Single-family home sales jumped from 42.3% of new sales in October 2010 to 50.0% of sales in October 2011. Meanwhile, attached units as a percentage of all new home sales declined to 50.0% of sales from 57.7% of sales.
Foreclosures and real estate owned (REO) sales continued to decline from a year earlier in October, but did not appear to be dragging the market. Combined, foreclosures plus REO sales made up 5.6% of existing home sales, below 15.9% a year earlier. The percentage of existing home sales involving foreclosures slid to 1.5% in October from 12.4% a year earlier and REO sales moved from 3.6% of existing home sales in October 2010 to 4.0% in October 2011.
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Source: Housing Intelligence