In the Worcester, MA market in January, closings of new homes declined year-over-year, and the decline was by a larger percentage than the December 2012. New home closings moved from 11 a year earlier to six after the figure moved from 16 in December 2011 to 13 in December 2012.
A total of 149 new homes were sold during the 12 months that ended in January, down from 154 for the year that ended in December.
Six of the 561 total closings were new home closings, a shift on a percentage basis from 11 out of 716 a year earlier. Following a year-over-year decline in December, closings of new and existing homes also slid year-over-year in January.
Pricing and Mortgage Trends
The average price of new homes rose to $444,124 from last year's $313,306. This was on the heels of a 16.5% rise in December year-over-year.
Average mortgage size on new homes went from $223,624 a year earlier to $362,461. Average mortgage size on new homes went from $245,158 in December 2011 to $249,276 in December 2012. For new home closings, the percentage of the sale price that was being financed grew 10.2 percentage points year-over-year to 81.6% in January 2013. This came after a 10.5 percentage point decline in December from a year earlier.
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. Single-family home closings made up five of six new home closings after accounting for seven of 11 a year earlier. Meanwhile, attached units made up one of six new home closings after making up four of 11 closings a year earlier.
The average unit size of newly sold homes rose from 2,173 square feet a year earlier to 2,238 square feet.
Foreclosures and real estate owned (REO) closings decreased in January from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 25.8% of closings, below 46.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.8% in January from 26.7% a year earlier and REO closings moved from 19.7% of existing home closings in January 2012 to 20.0% in January 2013.
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