Springfield, MA - Recent Figures for New Home Sales Suggest Market Drop is Subsiding
Posted on: Feb 06, 2012 09:41:56 AM
Sales of new homes declined year-over-year in October in the Springfield, MA market, but the decline was less than the year-over-year decline in September. New home sales moved from four a year earlier to three after the figure moved from 11 in September 2010 to two in September 2011.
A total of 74 new homes were sold during the 12 months that ended in October, down from 75 for the year that ended in September.
New home sales were three out of the 397 total sales, a move on a percentage basis from four of 276 a year earlier. Following a year-over-year increase in September, sales of new and existing homes also rose year-over-year in October.
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Pricing and Mortgage Trends
The average new home price was $367,603 in October 2011, up from $215,475 a year earlier. This followed a 5.0% decline in September from a year earlier.
Average mortgage size on new homes rose from $119,900 to $129,650. Average mortgage size went from $183,487 in September 2010 to $184,000 in September 2011. For new home sales, the percentage of the sale price that was being financed slid 20.4 percentage points year-over-year to 35.3% in October 2011. This was a swing downward after a 4.2 percentage point rise in September from a year earlier.
Springfield, MA - Recent Figures for New Home Sales Suggest Market Drop is Subsiding
Posted on: Feb 06, 2012 09:41:56 AM
Sales of new homes declined year-over-year in October in the Springfield, MA market, but the decline was less than the year-over-year decline in September. New home sales moved from four a year earlier to three after the figure moved from 11 in September 2010 to two in September 2011.
A total of 74 new homes were sold during the 12 months that ended in October, down from 75 for the year that ended in September.
New home sales were three out of the 397 total sales, a move on a percentage basis from four of 276 a year earlier. Following a year-over-year increase in September, sales of new and existing homes also rose year-over-year in October.
Pricing and Mortgage Trends
The average new home price was $367,603 in October 2011, up from $215,475 a year earlier. This followed a 5.0% decline in September from a year earlier.
Average mortgage size on new homes rose from $119,900 to $129,650. Average mortgage size went from $183,487 in September 2010 to $184,000 in September 2011. For new home sales, the percentage of the sale price that was being financed slid 20.4 percentage points year-over-year to 35.3% in October 2011. This was a swing downward after a 4.2 percentage point rise in September from a year earlier.
Other Market Trends
As a share of new home sales, single-family home sales have risen from last year while the share belonging to attached units has fallen. Single-family home sales made up all of new home sales after accounting for one of four last year. Meanwhile, attached units made up no part of new home sales after making up three of four sales a year earlier.
Foreclosures and real estate owned (REO) sales remained a burden on the market. Out of all existing home sales, foreclosures combined with REO sales made up 45.7% of sales. They represented 37.9% in October 2010. The percentage of existing home sales involving foreclosures went from 20.2% in October 2010 to 20.8% in October 2011 and REO sales as a percentage of existing home sales rose to 24.9% from 17.6%.
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Source: Housing Intelligence