In May, there was a fall year-over-year in new home closings in the Olympia, WA market, a move downward following a bump in April 2016. New home closings saw a 12.7% fall from a year earlier to 55. This followed a 34.0% rise year-over-year in April.
A total of 689 new homes were sold during the 12 months that ended in May, down from 697 for the year that ended in April.
New home closings represented 9.7% of overall housing closings. This is down from the 13.6% of closings a year earlier. Closings of new and existing homes grew year-over-year in May after also rising in April year-over-year.
Pricing and Mortgage Trends
In May, the average price of newly sold homes gained year-over-year to $337,278 per unit, a 10.4% bump. This hike compares to a 4.3% fall in April from a year earlier.
The average mortgage size on newly sold homes rose year-over-year along with the average price of new homes. In May 2016, average mortgage size increased 7.6% from a year earlier to $281,254. In April 2016, average mortgage size gained 4.4% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings jumped from 96.8% of new closings in May 2015 to 98.2% of closings in May 2016. Conversely, the share of new home closings belonging to attached units declined to 1.8% of closings from 3.2% of closings.
The average unit size of newly sold homes dropped 2.2% year-over-year to 2,236 square feet in May 2016. In April, the average size of new homes sold went from 2,222 square feet a year earlier to 2,145 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 17.5% of existing home closings, below a quarter a year earlier. The percentage of existing home closings involving foreclosures slid to 7.4% in May from 11.5% a year earlier while REO closings as a percentage of existing home closings sank to 10.1% from 13.5% a year earlier.