In August, closings of new homes in the Seattle, WA market grew year-over-year, but with an increase less steep than that of July 2015, the market seemed to be showing signs of leveling out. New home closings saw a rise of 7.8% from the year earlier to 592. This came on the heels of a 23.8% boost year-over-year in July.
A total of 6,934 new homes were sold during the 12 months that ended in August, up from 6,891 for the year that ended in July.
Out of all housing closings, new home closings accounted for 8.2%. New home closings were 8.6% of overall closings last year. For new and existing homes, closings rose year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price grew 25.5% year-over-year in August to $640,252 per unit. This bump is higher than the 18.6% boost in July year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size rose to $479,785 in August, marking a 16.7% gain compared with a year earlier. In July 2015, average mortgage size rose 14.6% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units grew from 12.4% of closings in August 2014 to a quarter of closings in August 2015. Meanwhile, single-family home closings as a percentage of all new home closings slid to three quarters of closings from 87.6% of closings.
There was a 8.2% decline year-over-year in the average unit size of newly sold homes to 2,380 square feet in August 2015. For newly sold homes, an average size drop contrasting with an average price gain was also seen in July 2015 when the average size of newly sold homes dropped 10.8% to 2,223 square feet. The average size of newly sold homes moved from 2,492 square feet in July 2014 to 2,223 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 14.3% of existing closings, lower than 19.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 6.5% in August from 8.6% a year earlier while REO closings as a percentage of existing home closings sank to 7.8% from 10.9% a year earlier.