In May, closings of new homes rose year-over-year in the Phoenix, AZ market, but the percentage gain was less pronounced than April 2016, indicating the market may be leveling out. New home closings saw a boost of 6.9% from the year earlier to 1,009. In comparison, new home closings in the same month last year saw a 9.9% climb year-over-year in April.
A total of 12,398 new homes were sold during the 12 months that ended in May, up from 12,333 for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 8.5% of closings, relatively stable from a year earlier. After dropping in April from a year earlier, closings of new and existing homes jumped year-over-year in May.
Pricing and Mortgage Trends
In May, the average price of newly sold homes increased year-over-year to $347,120 per unit, a 6.1% hike. This rise compares to a 4.6% decline in April from a year earlier.
The average mortgage size on new homes moved north year-over-year along with new home prices. In May 2016, the average mortgage size on newly sold homes saw a 2.0% hike from a year earlier. In April 2016, average mortgage size on newly sold homes saw a 4.2% fall from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 95.0% of new home closings to 94.5% of closings while attached units have gone from 5.0% of closings to 5.5% of closings.
There was a move in the average unit size of newly sold homes from 2,476 square feet in May 2015 to 2,455 square feet in May 2016. In April, the average size of new homes sold went from 2,489 square feet a year earlier to 2,482 square feet.
Foreclosures and real estate owned (REO) closings rose in May from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 14.5% of existing home closings, up from 13.2% a year earlier. The percentage of existing home closings involving foreclosures went from 4.8% in May 2015 to 4.2% in May 2016 and REO closings as a percentage of existing home closings increased to 10.2% from 8.4%.