In July, the Seattle, WA market saw a drop year-over-year in new home closings, a drop following an increase in June 2016. New home closings saw a drop of 12.3% from the year earlier to 627. This came on the heels of a 4.5% rise year-over-year in June.
A total of 7,358 new homes were sold during the 12 months that ended in July, down from 7,446 for the year that ended in June.
Out of all housing closings, new home closings accounted for 8.2%. A year ago, new home closings made up 8.8%. Following a year-over-year increase in June, closings of new and existing homes dropped year-over-year in July.
Pricing and Mortgage Trends
Average price of newly sold homes had a 18.7% bump year-over-year to $665,397 per unit in July. This hike is higher than the 9.8% boost in June year-over-year.
The average mortgage size on newly sold homes saw a hike year-over-year along with new home prices. In July 2016, the average mortgage size was $494,991, a 13.7% gain from a year earlier. Average mortgage size climbed 11.7% in June 2016 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. Single-family home closings jumped from 68.3% of new closings in July 2015 to 71.8% of closings in July 2016. At the same time, the share of new home closings belonging to attached units dropped to 28.2% of closings from 31.7% of closings.
For all new homes sold, the average unit size rose 21.1% year-over-year to 2,771 square feet in July 2016. An increase was also seen in June 2016 when the average size of new homes sold increased 14.9% to 2,795 square feet. In June, the average size of new homes sold went from 2,433 square feet a year earlier to 2,795 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 11.6% of existing closings, lower than 16.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 5.7% in July from 8.5% a year earlier while REO closings as a percentage of existing home closings dropped to 5.9% from 8.1% a year earlier.