Closings of new homes in the Portland, OR market declined year-over-year in June, a shift downward off a surge in May 2016. There was a 8.2% fall in new home closings from a year earlier. This was after the housing market saw a 24.1% hike year-over-year in May.
A total of 4,635 new homes were sold during the 12 months that ended in June, down from 4,675 for the year that ended in May.
New home closings accounted for 8.5% of overall housing closings. As a part of the whole, new home closings were 8.4% a year earlier. Following a year-over-year rise in May, closings of new and existing homes slid year-over-year in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes increased year-over-year to $432,880 per unit, a 16.5% gain. This bump is better than the 8.7% gain in May year-over-year.
Average mortgage size on new homes rose year-over-year along with new home prices. In June 2016, the average mortgage size was $337,862, up 8.7% from a year earlier. Average mortgage size jumped 7.6% in May 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings gained from 82.4% of new closings in June 2015 to 83.7% of closings in June 2016. Conversely, the share of new home closings belonging to attached units fell to 16.3% of closings from 17.6% of closings.
There was a 3.3% bump year-over-year in the average unit size of newly sold homes to 2,170 square feet in June 2016. In May, the average size of new homes sold went from 2,257 square feet a year earlier to 2,185 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 11.0% of existing home closings, down from 12.0% a year earlier. The percentage of existing home closings involving foreclosures rose to 6.0% in June from 4.9% a year earlier while REO closings as a percentage of existing home closings dropped to 5.0% from 7.1% a year earlier.