New home closings climbed year-over-year in September in the Portland, OR market, picking up from a drop in August 2015. There was a 33.9% climb in new home closings from a year earlier. This followed a 11.3% drop year-over-year in August.
A total of 3,903 new homes were sold during the 12 months that ended in September, up from 3,810 for the year that ended in August.
New home closings accounted for 7.6% of overall housing closings. They accounted for 7.0% of closings a year earlier. Closings of new and existing homes grew year-over-year in September after also rising in August year-over-year.
Pricing and Mortgage Trends
In September, the average price of newly sold homes grew year-over-year to $382,055 per unit, a 4.5% bump. This boost is smaller than the 11.1% gain in August year-over-year.
The average mortgage size on newly sold homes saw a hike year-over-year along with new home prices. The average mortgage size rose to $311,498 in September, marking a 2.8% boost compared with a year earlier. Average mortgage size increased 9.6% in August 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have fallen. Attached unit closings gained from 11.7% of all closings in September 2014 to 12.8% of closings in September 2015. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 87.2% of closings from 88.3% of closings.
The average unit size of newly sold homes fell 2.2% year-over-year to 2,235 square feet in September 2015. In August, the average size of new homes sold went from 2,286 square feet a year earlier to 2,338 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 13.5% of existing home closings, down from 16.8% a year earlier. The percentage of existing home closings involving foreclosures sank to 6.5% in September from 9.5% a year earlier and REO closings moved from 7.2% of existing home closings in September 2014 to 7.0% in September 2015.