Closings of new homes in the Lake Havasu City, AZ market declined year-over-year in April, moving downward after a surge in March 2016. There was a 26.9% drop in new home closings from a year earlier. This came on the heels of a 12.5% jump year-over-year in March.
A total of 248 new homes were sold during the 12 months that ended in April, down from 255 for the year that ended in March.
New home closings represented 4.3% of overall housing closings. A year ago, new home closings accounted for 5.2%. After rising year-over-year in March, closings of new and existing homes fell year-over-year in April.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 1.7% hike year-over-year in April to $239,203 per unit. This boost compares to a 6.9% fall in March from a year earlier.
Average mortgage size on new homes saw a drop year-over-year in contrast to prices of new homes. In April 2016, average mortgage size on new homes sold was $181,479, down 6.5% from a year earlier. Average mortgage size fell 4.0% in March 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in April 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size gained 8.5% year-over-year to 1,987 square feet in April 2016. In March, the average size of new homes sold went from 1,776 square feet a year earlier to 1,812 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 13.2% of existing home closings, below 22.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.8% in April from 10.2% a year earlier while REO closings as a percentage of existing home closings dropped to 8.4% from 12.3% a year earlier.