The Seattle, WA market saw an increase in closings of new homes in June year-over-year, picking up from a decline in May 2016. New home closings saw a 4.0% rise from a year earlier to 780. This followed a move from 635 in May 2015 to 750 in May 2016.
A total of 7,446 new homes were sold during the 12 months that ended in June, up from 7,416 for the year that ended in May.
As a percentage of overall housing closings, new home closings accounted for 9.2% of closings, relatively stable from a year earlier. Closings of new and existing homes increased year-over-year in June after also rising in May year-over-year.
Pricing and Mortgage Trends
In June, the average price of newly sold homes rose year-over-year to $595,876 per unit, a 9.8% bump. This hike is smaller than the 10.4% bump in May year-over-year.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. The average mortgage size rose to $463,873 in June, marking a 11.6% boost compared with a year earlier. Average mortgage size jumped 9.5% in May 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings gained from 75.1% of new closings in June 2015 to 77.2% of closings in June 2016. At the same time, the share of new home closings belonging to attached units sank to 22.8% of closings from 24.9% of closings.
There was a 14.9% rise year-over-year in the average unit size of newly sold homes to 2,795 square feet in June 2016. An increase was also seen in May 2016 when the average size of new homes sold climbed 4.7% to 2,644 square feet. The average size of newly sold homes moved from 2,525 square feet in May 2015 to 2,644 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 11.3% of existing closings, lower than 14.2% a year earlier. The percentage of existing home closings involving foreclosures went from 5.6% in June 2015 to 5.1% in June 2016 and REO closings as a percentage of existing home closings fell to 6.2% from 8.7% a year earlier.