In the Anchorage, AK market, new home closings dropped year-over-year in July, and there were signs of weakening market conditions with a percentage drop steeper than that of June 2016. There was a 50.0% drop in new home closings from a year earlier. This came after a 28.9% drop year-over-year in June.
A total of 468 new homes were sold during the 12 months that ended in July, down from 491 for the year that ended in June.
As a percentage of overall housing closings, new home closings made up 3.2%. This is down from the a year earlier when new home closings made up 5.2% of total closings. Closings of new and existing homes sank year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
The average price of new homes fell 20.8% year-over-year in July to $303,923 per unit. This decline compares to a 7.2% hike in June year-over-year.
The average mortgage size on newly sold homes sank year-over-year in contrast to the average price of new homes. Average mortgage size dropped by 20.9% from a year earlier, settling at $271,676 in July. Average mortgage size jumped 8.4% in June 2016 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 grew from 76.1% of new closings in July 2015 to 78.3% of closings in July 2016. Conversely, the share of new home closings belonging to attached units dropped to 21.7% of closings from 23.9% of closings.
There was a 32.8% drop year-over-year in the average unit size of newly sold homes to 1,447 square feet in July 2016. In June, the average size of new homes sold went from 2,156 square feet a year earlier to 2,433 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 5.8% of existing home closings, down from 9.8% a year earlier. The percentage of existing home closings involving foreclosures went from 3.6% in July 2015 to 3.2% in July 2016 and REO closings as a percentage of existing home closings slid to 2.6% from 6.3% a year earlier.