There was an increase in closings of new homes in the Albuquerque, NM market in June year-over-year, and there were signals of strengthening market conditions as the percentage lift was an greater than May 2016. New home closings saw a boost of 4.4% from the year earlier to 142. This came after a 1.8% hike year-over-year in May.
A total of 1,373 new homes were sold during the 12 months that ended in June, up from 1,367 for the year that ended in May.
Compared to a year earlier, new home closings as a percentage of total closings stayed the same at 7.6%. Following a year-over-year increase in May, closings of new and existing homes also rose year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes was $271,775 per unit in June, up 13.8%from a year earlier. This boost is higher than the 8.4% rise in May year-over-year.
The average mortgage size on newly sold homes saw a lift year-over-year along with new home prices. In June 2016, there was a 13.6% hike in the average mortgage size, reaching $242,129. In May 2016, average mortgage size increased 5.1% 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 climbed from 94.1% of new closings in June 2015 to 96.5% of closings in June 2016. Conversely, the share of new home closings belonging to attached units sank to 3.5% of closings from 5.9% of closings.
The average unit size of newly sold homes jumped 9.0% year-over-year to 2,465 square feet in June 2016. The average size of newly sold homes moved from 2,077 square feet in May 2015 to 2,818 square feet in May 2016. An increase in both the average size and price of newly sold homes was also seen in May 2016 when the average size grew 35.7% to 2,818 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 14.7% of existing home closings, below 19.7% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.8% in June from 7.6% a year earlier while REO closings as a percentage of existing home closings slid to 8.9% from 12.1% a year earlier.