There was an increase in closings of new homes in the Albuquerque, NM market in January year-over-year, and the percentage hike that was sharper than December 2015 seems to indicate improving market conditions. Closings increased 53.6% from a year earlier to 86. This came on the heels of a 29.3% hike year-over-year in December.
A total of 1,347 new homes were sold during the 12 months that ended in January, up from 1,317 for the year that ended in December.
Out of all housing closings, new home closings accounted for 7.8%. This is an increase on a percentage basis, as new home closings were 5.1% of total closings a year ago. After rising in December from a year earlier, closings of new and existing homes stayed steady in January.
Pricing and Mortgage Trends
In January, the average value of new homes saw a 4.5% surge year-over-year as it grew to $252,899 per unit. This hike is smaller than the 6.8% gain in December year-over-year.
The average mortgage size on newly sold homes saw a bump year-over-year along with new home prices. The average mortgage size saw a 1.0% gain year-over-year to $223,920 in January. Average mortgage size grew 5.8% in December 2015 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings rose from 3.6% of all closings in January 2015 to 5.8% of closings in January 2016. Conversely, the share belonging to single-family homes dropped to 94.2% of closings from 96.4% of closings.
The average unit size of newly sold homes went from 1,878 square feet in January 2015 to 1,896 square feet in January 2016. In December 2015, the average size of newly sold homes slid 5.6% from the year earlier. The average size of newly sold homes moved from 2,102 square feet in December 2014 to 1,985 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 21.6% of existing home closings, down from 26.7% a year earlier. The percentage of existing home closings involving foreclosures sank to 7.3% in January from 11.6% a year earlier and REO closings moved from 15.2% of existing home closings in January 2015 to 14.3% in January 2016.