There was an increase in closings of new homes in the Albuquerque, NM market in May year-over-year, but as the percentage jumped less than April 2016, the market seemed to show signs of leveling. There was a 1.8% hike in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 7.5% jump year-over-year in April.
A total of 1,367 new homes were sold during the 12 months that ended in May, up from 1,365 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 6.7% of overall housing closings. They represented 7.3% of closings a year earlier. For new and existing homes, closings rose year-over-year in May after also increasing in April year-over-year.
Pricing and Mortgage Trends
In May, the average value of new homes saw a 8.4% bump year-over-year as it grew to $266,900 per unit. This bump is an improvement over the 2.4% hike in April year-over-year.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. It increased to $234,506 in May, a 5.1% rise. Average mortgage size increased 1.7% in April 2016 from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 94.5% of new home closings to 95.5% of closings while attached units have gone from 5.5% of closings to 4.5% of closings.
For all new homes sold, the average unit size gained 35.7% year-over-year to 2,818 square feet in May 2016. In April, the average size of new homes sold went from 2,129 square feet a year earlier to 1,959 square feet.
Foreclosures and real estate owned (REO) closings rose in May from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 19.1% of existing home closings, up from 17.9% a year earlier. The percentage of existing home closings involving foreclosures went from 7.3% in May 2015 to 6.8% in May 2016 and REO closings as a percentage of existing home closings climbed to 12.2% from 10.7%.