In May, there was an increase in closings of new homes in the Flagstaff, AZ market year-over-year, and the increase was greater than April 2016. New home closings moved from 1 a year earlier to 5 after the figure moved from 3 in April 2015 to 4 in April 2016.
New home closings were 5 of the 115 total closings, up on a percentage basis from 1 of 75 a year earlier. Closings of new and existing homes increased year-over-year in May after also rising in April year-over-year.
The average price for newly sold homes moved north to $324,714 from $152,900 a year ago. This came after a 44.3% surge in April year-over-year.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016.
The average unit size of newly sold homes remained steady year-over-year at 4,294 square feet in May 2016.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 23.6% of existing home closings, up from 16.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 8.2% in May from 6.8% a year earlier while REO closings as a percentage of existing home closings gained to 15.5% from 9.5%.