In October, the Worcester, MA market saw a fall year-over-year in new home closings, but the decline was less than the year-over-year decline in September. New home closings moved from 24 a year earlier to 12 after the figure moved from 29 in September 2011 to 11 in September 2012.
A total of 213 new homes were sold during the 12 months that ended in October, down from 225 for the year that ended in September.
New home closings accounted for 12 of the 819 total closings, a smaller percentage compared with 24 of 844 closings a year earlier. Following a year-over-year decline in September, closings of new and existing homes also dipped year-over-year in October.
Pricing and Mortgage Trends
The average price of new homes sold in October 2012 rose to $274,706 from the year-earlier figure of $268,122. This came after a 6.8% decline in September from a year earlier.
The average mortgage size on new homes was $226,592, up from $213,970. Average mortgage size on new homes went from $276,496 in September 2011 to $371,746 in September 2012.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached closings made up six of 12 new home closings after accounting for seven of 24 a year earlier. Meanwhile, single-family homes made up six of 12 new home closings after making up 17 of 24 a year earlier.
The average unit size of newly sold homes fell from 2,032 square feet a year earlier to 1,566 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in October, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 24.8% of existing home closings, down from 40.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 6.3% in October from 21.1% a year earlier and REO closings moved from 19.3% of existing home closings in October 2011 to 18.5% in October 2012.
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