In the Tucson, AZ market, new home closings jumped year-over-year in February, and there were signs of strengthening market conditions as the percentage hike was an greater than January 2016. New home closings saw a 38.9% jump from a year earlier to 132. This came on the heels of a 3.6% rise year-over-year in January.
A total of 1,595 new homes were sold during the 12 months that ended in February, up from 1,558 for the year that ended in January.
As a percentage of overall housing closings, new home closings represented 7.2% of overall housing closings. A year earlier, new home closings accounted for 6.4% of total closings. For new and existing homes, closings gained year-over-year in February after also increasing in January year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price jumped 9.1% year-over-year in February to $294,947 per unit. This bump is smaller than the 9.4% boost in January year-over-year.
The average mortgage size on newly sold homes climbed year-over-year along with the average price of new homes. In February 2016, the average mortgage size was $262,396, a 6.1% boost from a year earlier. In January 2016, average mortgage size on newly sold homes saw a 8.0% bump year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. Attached unit closings increased from 1.1% of all closings in February 2015 to 2.3% of closings in February 2016. Conversely, the share belonging to single-family homes declined to 97.7% of closings from 98.9% of closings.
There was a 24.9% rise year-over-year in the average unit size of newly sold homes to 2,841 square feet in February 2016. An increase was also seen in January 2016 when the average size of new homes sold increased 26.7% to 2,836 square feet. In January, the average size of new homes sold went from 2,238 square feet a year earlier to 2,836 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in February, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 16.2% of existing closings, lower than 21.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 7.3% in February from 10.8% a year earlier while REO closings as a percentage of existing home closings slid to 9.0% from 11.1% a year earlier.