There was a rise in new home closings in the Tucson, AZ market in January year-over-year, but as the percentage increased less than December 2015, the market seemed to show signs of leveling. Closings climbed 3.7% from a year earlier to 85. This came after a 8.8% hike year-over-year in December.
A total of 1,484 new homes were sold during the 12 months that ended in January, up from 1,481 for the year that ended in December.
Of the total number of closings, new home closings made up 7.0%. As a part of the whole, new home closings were 7.3% a year earlier. Following a year-over-year increase in December, closings of new and existing homes also rose year-over-year in January.
Pricing and Mortgage Trends
In January, the average price of newly sold homes climbed year-over-year to $296,115 per unit, a 9.5% boost. This bump is better than the 7.4% boost in December year-over-year.
The average mortgage size on newly sold homes jumped year-over-year along with the average price of new homes. In January 2016, average mortgage size gained 7.6% from a year earlier to $238,302. In December 2015, average mortgage size climbed 4.7% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes rose from 91.5% in January 2015 to 92.9% of closings in January 2016. Conversely, the share of new home closings belonging to attached units declined to 7.1% of closings from 8.5% of closings.
For all new homes sold, the average unit size climbed 21.5% year-over-year to 2,720 square feet in January 2016. An increase was also seen in December 2015 when the average size of new homes sold jumped 13.1% to 2,428 square feet. The average size of newly sold homes moved from 2,146 square feet in December 2014 to 2,428 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 23.1% of existing closings, lower than 27.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 11.2% in January from 15.4% a year earlier and REO closings moved from 11.7% of existing home closings in January 2015 to 11.9% in January 2016.