In the Phoenix, AZ market in November, closings of new homes rose year-over-year, rising after a fall in October 2015. There was a 14.0% boost in new home closings from a year earlier. This followed a 1.7% fall year-over-year in October.
A total of 10,805 new homes were sold during the 12 months that ended in November, up from 10,699 for the year that ended in October.
New home closings accounted for 11.7% of overall housing closings. A year ago, new home closings made up 10.9%. Following a year-over-year increase in October, closings of new and existing homes also increased year-over-year in November.
Pricing and Mortgage Trends
The average price of new homes dropped 5.2% year-over-year in November to $328,005 per unit. This fall compares to a 3.4% surge in October year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In November 2015, average mortgage size on new homes sold was $262,864, down 2.2% from a year earlier. In October 2015, average mortgage size rose 1.1% from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 94.3% of new home closings to 95.0% of closings while attached units have gone from 5.7% of closings to 5.0% of closings.
The average unit size of newly sold homes declined 3.3% year-over-year to 2,448 square feet in November 2015. The average size of newly sold homes moved from 2,461 square feet in October 2014 to 2,409 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 15.0% of existing home closings, below 18.8% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.1% in November from 8.5% a year earlier while REO closings as a percentage of existing home closings sank to 7.9% from 10.4% a year earlier.