There was a rise in new home closings in the Phoenix, AZ market in February year-over-year, rising after a decline in January 2016. New home closings saw a hike of 7.5% from the year earlier to 871. This was after the housing market saw a 3.9% fall year-over-year in January.
A total of 11,502 new homes were sold during the 12 months that ended in February, up from 11,441 for the year that ended in January.
Out of all housing closings, new home closings represented 10.4%. New home closings were 9.9% of overall closings last year. Following a decline in January year-over-year, closings of new and existing homes grew year-over-year in February.
Pricing and Mortgage Trends
In February, there was a 2.8% hike year-over-year in the average price of newly sold homes, reaching $343,102 per unit. This bump is an improvement over the 2.2% boost in January year-over-year.
Average mortgage size on new homes went from $274,471 in February 2015 to $275,614 in February 2016. In January 2016, average mortgage size sank 1.7% from a year earlier.
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. The share of new home closings belonging to attached units jumped from 5.2% of closings in February 2015 to 6.4% of closings in February 2016. At the same time, the share belonging to single-family homes fell to 93.6% of closings from 94.8% of closings.
For all new homes sold, the average unit size declined 2.8% year-over-year to 2,458 square feet in February 2016. This decline was opposite the price rise, a pattern also seen in January 2016 when the average size of newly sold homes slid 3.9% to 2,431 square feet. The average size of newly sold homes moved from 2,530 square feet in January 2015 to 2,431 square feet in January 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in February, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 14.2% of existing home closings, down from 16.6% a year earlier. The percentage of existing home closings involving foreclosures went from 6.6% in February 2015 to 6.1% in February 2016 and REO closings as a percentage of existing home closings fell to 8.1% from 10.1% a year earlier.