New home closings dropped year-over-year in June in the Lake Havasu City, AZ market, and there were signs of weakening market conditions with a percentage decline steeper than that of May 2016. New home closings saw a fall of 32.1% from the year earlier to 19. This was after the housing market saw a 15.4% fall year-over-year in May.
A total of 239 new homes were sold during the 12 months that ended in June, down from 248 for the year that ended in May.
New home closings accounted for 4.0% of overall housing closings. This is down from the 6.5% of closings a year earlier. Closings of new and existing homes rose year-over-year in June after also rising in May year-over-year.
Pricing and Mortgage Trends
In June, the average value of new homes saw a 3.9% hike year-over-year as it grew to $234,832 per unit. This lift follows a move from $224,710 per unit in May 2015 to $226,878 in May 2016.
The average mortgage size on newly sold homes slid year-over-year in contrast to the average price of new homes. In June 2016, average mortgage size on new homes sold was $189,326, down 10.3% from a year earlier. In May 2016, average mortgage size on newly sold homes saw a 9.3% bump year-over-year from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units climbed from 3.6% of closings in June 2015 to 15.8% of closings in June 2016. Meanwhile, single-family home closings as a percentage of all new home closings sank to 84.2% of closings from 96.4% of closings.
For all new homes sold, the average unit size gained 10.1% year-over-year to 1,846 square feet in June 2016. The average size of newly sold homes moved from 1,807 square feet in May 2015 to 1,764 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 12.8% of existing home closings, below 22.6% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.6% in June from 12.2% a year earlier while REO closings as a percentage of existing home closings declined to 8.3% from 10.4% a year earlier.
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