New home closings dropped year-over-year in September in the Phoenix, AZ market, a downhill move after a gain in August 2015. New home closings saw a fall of 1.6% from the year earlier to 915. This came on the heels of a 5.5% hike year-over-year in August.
A total of 10,401 new homes were sold during the 12 months that ended in September, down from 10,416 for the year that ended in August.
Out of all housing closings, new home closings made up 10.3%. This is a drop 11.8% of closings a year earlier. Following a year-over-year increase in August, closings of new and existing homes also rose year-over-year in September.
Pricing and Mortgage Trends
In September, there was a 3.0% decline year-over-year in the average per-unit price of newly sold homes, settling at $324,583. This drop compares to a 2.3% gain in August year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It slid 4.7% in September from a year earlier, reaching $262,600. Average mortgage size went from $270,418 in August 2014 to $272,526 in August 2015.
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 93.3% of new home closings to 93.1% of closings while attached units have gone from 6.7% of closings to 6.9% of closings.
There was a 3.3% fall year-over-year in the average unit size of newly sold homes to 2,398 square feet in September 2015. The average size of newly sold homes moved from 2,549 square feet in August 2014 to 2,482 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 14.4% of closings, below 20.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 6.0% in September from 8.9% a year earlier while REO closings as a percentage of existing home closings slid to 8.3% from 11.3% a year earlier.