In December, the Spokane, WA market saw a fall year-over-year in new home closings, but the percentage decline, which was less than that of November 2015, gave suggestions that the market may be leveling out. There was a 29.4% decline in new home closings from a year earlier. This followed a 48.9% drop year-over-year in November.
A total of 616 new homes were sold during the 12 months that ended in December, down from 631 for the year that ended in November.
New home closings made up 5.6% of overall housing closings. This is down from the a year earlier when new home closings accounted for 8.3% of total closings. After dropping in November from a year earlier, closings of new and existing homes jumped year-over-year in December.
Pricing and Mortgage Trends
For newly sold homes, the average price fell 4.1% year-over-year in December to $272,610 per unit. This decline compares to a 6.2% rise in November year-over-year.
The average mortgage size on newly sold homes sank year-over-year in contrast to the average price of new homes. The average mortgage size dropped to $225,407 in December, marking a 6.4% fall compared with last year. In November 2015, average mortgage size gained 8.7% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes increased from 96.1% in December 2014 to all of closings in December 2015. At the same time, the share of new home closings belonging to attached units slid to no part of closings from 3.9% of closings.
For all new homes sold, the average unit size slid 15.5% year-over-year to 1,891 square feet in December 2015. The average size of newly sold homes moved from 2,172 square feet in November 2014 to 2,343 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in December, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 24.5% of existing home closings, down from 29.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 9.1% in December from 11.4% a year earlier while REO closings as a percentage of existing home closings sank to 15.4% from 18.4% a year earlier.