In the Phoenix, AZ market, new home closings rose year-over-year in April, but with a less pronounced percentage lift than March 2016, there are suggestions of market stabilization. New home closings saw a hike of 6.5% from the year earlier to 967. This followed a 37.5% jump year-over-year in March.
A total of 12,180 new homes were sold during the 12 months that ended in April, up from 12,121 for the year that ended in March.
Out of all housing closings, new home closings accounted for 10.0%. This is a boost from 7.9% of closings a year earlier. Following a year-over-year rise in March, closings of new and existing homes slid year-over-year in April.
Pricing and Mortgage Trends
The average per-unit value of new homes sank year-over-year to $324,182 in April, a drop of 4.7% from a year earlier. This fall compares to a 3.3% rise in March year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In April 2016, average mortgage size sank 4.3% from a year earlier to $267,156. Average mortgage size went from $273,992 in March 2015 to $271,253 in March 2016.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. Attached unit closings gained from 3.3% of all closings in April 2015 to 5.9% of closings in April 2016. At the same time, the share belonging to single-family homes declined to 94.1% of closings from 96.7% of closings.
There was a move in the average unit size of newly sold homes from 2,489 square feet in April 2015 to 2,483 square feet in April 2016. In March 2016, the average size of newly sold homes dropped 6.6% from the year earlier. In March, the average size of new homes sold went from 2,477 square feet a year earlier to 2,314 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 10.9% of closings, below 14.9% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.0% in April from 6.6% a year earlier while REO closings as a percentage of existing home closings declined to 6.9% from 8.3% a year earlier.