In April, there was a drop year-over-year in new home closings in the Seattle, WA market, and there were hints of weakening market conditions with a percentage drop steeper than that of March 2016. Closings sank 19.6% from a year earlier to 595. This was after the housing market saw a 8.7% fall year-over-year in March.
A total of 7,385 new homes were sold during the 12 months that ended in April, down from 7,530 for the year that ended in March.
Out of all housing closings, new home closings represented 9.0%. This is down from the a year earlier when new home closings made up 10.5% of total closings. Following a year-over-year rise in March, closings of new and existing homes declined year-over-year in April.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 9.4% hike year-over-year in April to $583,675 per unit. This boost is smaller than the 15.1% bump in March year-over-year.
For newly sold homes, the average mortgage size saw a hike year-over-year along with new home prices. In April 2016, the average mortgage size was $453,019, up 6.5% from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 11.3% bump year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings gained from 79.7% of new closings in April 2015 to 83.7% of closings in April 2016. At the same time, the share of new home closings belonging to attached units sank to 16.3% of closings from 20.3% of closings.
The average unit size of newly sold homes dropped 2.8% year-over-year to 2,518 square feet in April 2016. The average size of newly sold homes moved from 2,588 square feet in March 2015 to 2,675 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 15.2% of existing home closings, down from 16.9% a year earlier. The percentage of existing home closings involving foreclosures went from 6.6% in April 2015 to 7.5% in April 2016 and REO closings as a percentage of existing home closings fell to 7.6% from 10.2% a year earlier.