The Spokane, WA market saw a drop in new home closings year-over-year in February, and there were signs of worsening market conditions as the percentage fall was steeper than January 2016. New home closings saw a 62.5% fall from a year earlier to 15. In comparison, new home closings in the same month last year saw a 52.6% decline year-over-year in January.
A total of 575 new homes were sold during the 12 months that ended in February, down from 600 for the year that ended in January.
As a percentage of overall housing closings, new home closings represented 3.5%. This is down from the a year earlier when new home closings represented 7.9% of total closings. Following a year-over-year decline in January, closings of new and existing homes also declined year-over-year in February.
Pricing and Mortgage Trends
The average per-unit value of new homes slid year-over-year to $274,755 in February, a drop of 1.5% from a year earlier. This decline compares to a 10.9% rise in January year-over-year.
Average mortgage size on new homes rose year-over-year in contrast to new home prices. Average mortgage size climbed 2.3% to $229,614 in February from a year earlier. In January 2016, average mortgage size on newly sold homes saw a 10.2% rise year-over-year 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. Single-family home closings grew from 92.5% of new closings in February 2015 to all of closings in February 2016. Meanwhile, attached units as a percentage of all new home closings dropped to no part of closings from 7.5% of closings.
There was a 16.9% fall year-over-year in the average unit size of newly sold homes to 1,715 square feet in February 2016. The average size of newly sold homes moved from 1,955 square feet in January 2015 to 2,183 square feet in January 2016.
Foreclosures and real estate owned (REO) closings declined in February from a year earlier, but remained a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 28.1% of closings, below 35.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 10.8% in February from 15.1% a year earlier while REO closings as a percentage of existing home closings dropped to 17.4% from 20.5% a year earlier.