There was a rise in closings of new homes in the Prescott, AZ market in March year-over-year, but with an increase less steep than that of February 2016, the market seemed to be showing signs of stabilizing. New home closings saw a 9.3% hike from a year earlier to 47. This came on the heels of a 29.2% jump year-over-year in February.
A total of 562 new homes were sold during the 12 months that ended in March, up from 558 for the year that ended in February.
Of 456 total closings, 47 were of new homes. This is better than the 9.2% of closings a year earlier. Following a year-over-year increase in February, closings of new and existing homes sank year-over-year in March.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes climbed year-over-year to $312,204 in March, up 10.2% from last year. This hike compares to a 11.8% fall in February from a year earlier.
Average mortgage size on new homes dropped year-over-year in contrast to new home prices. In March 2016, the average mortgage size on newly sold homes saw a 6.1% decline from a year earlier. Average mortgage size declined 13.5% in February 2016 from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 97.7% of new home closings to 97.9% of closings while attached units have gone from 2.3% of closings to 2.1% of closings.
The average unit size of newly sold homes went from 1,925 square feet in March 2015 to 1,934 square feet in March 2016. In February 2016, the average size of newly sold homes slid 20.7% from the year earlier. The average size of newly sold homes moved from 2,004 square feet in February 2015 to 1,589 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in March, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 13.9% of existing closings, lower than 16.6% a year earlier. The percentage of existing home closings involving foreclosures dropped to 8.1% in March from 10.2% a year earlier and REO closings moved from 6.4% of existing home closings in March 2015 to 5.9% in March 2016.