New home closings in the Prescott, AZ market slid year-over-year in January, a drop following an increase in December 2015. Closings fell 23.3% from a year earlier to 23. This came after a 58.1% jump year-over-year in December.
A total of 481 new homes were sold during the 12 months that ended in January, down from 488 for the year that ended in December.
New home closings represented 7.3% of overall housing closings. This is a fall 8.9% of closings a year earlier. After rising year-over-year in December, closings of new and existing homes dropped year-over-year in January.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 12.0% drop year-over-year in January to $259,497 per unit. This decline compares to a 49.4% bump in December year-over-year.
For newly sold homes, the average mortgage size dropped year-over-year in contrast to average price of new homes. In January 2016, average mortgage size sank 5.4% from a year earlier to $189,804. Average mortgage size rose 24.0% in December 2015 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 January 2016. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes fell 7.8% year-over-year to 1,824 square feet in January 2016. In December, the average size of new homes sold went from 1,954 square feet a year earlier to 1,900 square feet.
Foreclosures and real estate owned (REO) closings increased in January from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 16.4% of existing home closings, above 16.3% a year earlier. The percentage of existing home closings involving foreclosures declined to 8.2% in January from 9.4% a year earlier while REO closings as a percentage of existing home closings jumped to 8.2% from 6.8%.