In the Bellingham, WA market, closings of new homes slid year-over-year in May, but the percentage decline narrowed from that of April 2016, suggesting that the market may be leveling out. New home closings saw a decline of 12.9% from the year earlier to 27. This followed a 26.1% decline year-over-year in April.
A total of 209 new homes were sold during the 12 months that ended in May, down from 213 for the year that ended in April.
New home closings represented 5.3% of overall housing closings. This is a drop 6.7% of closings a year earlier. Closings of new and existing homes rose year-over-year in May following a fall in April year-over-year.
Pricing and Mortgage Trends
In May, the average price of newly sold homes jumped year-over-year to $411,942 per unit, a 32.9% bump. This boost is an improvement over the 10.6% gain in April year-over-year.
For newly sold homes, the average mortgage size saw a gain year-over-year along with new home prices. The average mortgage size saw a 37.2% hike year-over-year to $355,095 in May. Average mortgage size gained 9.7% in April 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. The share of new home closings belonging to single-family homes grew from 87.1% in May 2015 to all of closings in May 2016. Conversely, the share of new home closings belonging to attached units sank to no part of closings from 12.9% of closings.
The average unit size of newly sold homes increased 35.4% year-over-year to 2,529 square feet in May 2016. An increase was also seen in April 2016 when the average size of new homes sold gained 13.4% to 2,155 square feet. The average size of newly sold homes moved from 1,900 square feet in April 2015 to 2,155 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 6.4% of existing closings, lower than 10.2% a year earlier. The percentage of existing home closings involving foreclosures dropped to 3.3% in May from 5.5% a year earlier while REO closings as a percentage of existing home closings fell to 3.1% from 4.6% a year earlier.