In the Anchorage, AK market, closings of new homes dropped year-over-year in January, but with a percentage fall less steep than December 2015, there are signs the market may be stabilizing. Closings fell 30.0% from a year earlier to 21. This came on the heels of a 40.8% decline year-over-year in December.
A total of 403 new homes were sold during the 12 months that ended in January, down from 412 for the year that ended in December.
New home closings accounted for 4.7% of overall housing closings. This is down from the 6.0% of closings a year earlier. For new and existing homes, closings slid in January after also declining in December year-over-year.
Pricing and Mortgage Trends
The average price of new homes dropped by 18.6% year-over-year to $278,658 per unit in January. This decline is a drop off from the 20.7% drop in December from a year earlier.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. It sank 12.9% in January from a year earlier, reaching $261,198. In December 2015, average mortgage size on newly sold homes saw a 21.7% drop 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 gained from 80.0% of new closings in January 2015 to 95.2% of closings in January 2016. At the same time, the share of new home closings belonging to attached units dropped to 4.8% of closings from 20.0% of closings.
For all new homes sold, the average unit size fell 41.7% year-over-year to 1,180 square feet in January 2016. The average size of newly sold homes moved from 2,436 square feet in December 2014 to 2,418 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 13.5% of closings, below 17.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.5% in January from 7.2% a year earlier while REO closings as a percentage of existing home closings sank to 8.1% from 10.4% a year earlier.