New home sales in the Providence, RI market sank year-over-year in September, and the decline was by a larger percentage than the August 2011. New home sales moved from 40 a year earlier to 14 after the figure moved from 27 in August 2010 to 20 in August 2011.
In the 12 months ending September 2011, there were 250 new home sales, down from an annualized 276 in August.
New home sales were 14 of the 999 total sales, down on a percentage basis from 40 of 1,391 a year earlier. Sales of new and existing homes declined year-over-year in September after also falling in August year-over-year.
Pricing and Mortgage Trends
The average value of new homes sold in September 2011 declined to $229,824 from the year-earlier figure of $293,094. This came after a 9.6% rise in August year-over-year.
Average mortgage size on newly sold homes saw a decline from $217,103 to $154,187. In August 2011, average mortgage size on newly sold homes saw a 10.5% decline from a year earlier. Of the overall sale price, the percentage that was being financed declined 7.0 percentage points year-over-year to 67.1% in September 2011.
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 11 of 14 new home sales after accounting for 22 of 40 a year earlier. Meanwhile, attached units made up three of 14 new home sales after making up three of 40 sales a year earlier.
The average unit size of newly sold homes fell from 1,808 square feet a year earlier to 1,687 square feet.
Foreclosures and real estate owned (REO) sales stayed a drag on the market. Out of all existing home sales, foreclosures combined with REO sales accounted for 42.6% of sales. They made up 38.7% of sales in September 2010. Foreclosures increased to 23.5% of existing home sales in September from 20.2% of sales a year earlier and REO sales went from 18.5% of existing sales in September 2010 to 19.2% of sales in September 2011.
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