New home closings in the Honolulu, HI market dropped year-over-year in July, and the decline was by a larger percentage than the June 2016. New home closings moved from 58 a year earlier to 11 after the figure moved from 47 in June 2015 to 11 in June 2016.

A total of 584 new homes were sold during the 12 months that ended in July, down from 631 for the year that ended in June.

New home closings were 11 out of the 927 total closings, down on a percentage basis from 58 of 1,070 a year earlier. For new and existing homes, closings fell in July after also declining in June year-over-year.

Pricing and Mortgage Trends

The average new home price was $717,667, up from $686,693 a year earlier. This was on the heels of a 40.3% boost in June year-over-year.

The average mortgage size on new homes was $670,666, up from $591,397. Average mortgage size on new homes went from $575,900 in June 2015 to $738,761 in June 2016.

Other Market Trends

As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.

There was a move in the average unit size of newly sold homes from 1,538 square feet in July 2015 to 1,529 square feet in July 2016.

Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 7.1% of existing home closings, below 7.4% a year earlier. The percentage of existing home closings involving foreclosures rose to 4.1% in July from 2.4% a year earlier while REO closings as a percentage of existing home closings declined to 2.9% from 5.0% a year earlier.

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