Closings of new homes fell year-over-year in August in the Tucson, AZ market, and the percentage fall was steeper than July 2015, suggesting the market may be worsening. New home closings saw a decline of 17.9% from the year earlier to 115. This followed a 5.5% decline year-over-year in July.
A total of 1,325 new homes were sold during the 12 months that ended in August, down from 1,350 for the year that ended in July.
New home closings accounted for 7.9% of overall housing closings. This is a drop 9.9% of closings a year earlier. Closings of new and existing homes increased year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes sank 4.1% year-over-year in August to $260,523 per unit. This drop compares to a 13.0% lift in July year-over-year.
Average mortgage size on new homes saw a decline year-over-year in contrast to prices of new homes. It sank 12.9% in August from a year earlier to $211,948. Average mortgage size fell 5.9% in July 2015 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 98.6% of new home closings to 99.1% of closings while attached units have gone from 1.4% of closings to 0.9% of closings.
There was a 9.9% fall year-over-year in the average unit size of newly sold homes to 2,065 square feet in August 2015. In July, the average size of new homes sold went from 2,271 square feet a year earlier to 2,317 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 24.5% of existing home closings, down from 26.2% a year earlier. The percentage of existing home closings involving foreclosures went from 12.1% in August 2014 to 12.4% in August 2015 and REO closings as a percentage of existing home closings fell to 12.1% from 14.1% a year earlier.