The Honolulu, HI market saw an increase in closings of new homes in March year-over-year, rebounding from a year-over-year fall in February 2016. There was a 52.1% climb in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 79.4% fall year-over-year in February.
A total of 654 new homes were sold during the 12 months that ended in March, up from 616 for the year that ended in February.
Out of all housing closings, new home closings accounted for 10.5%. This marks a rise from 7.4% of total closings a year earlier. After dropping in February from a year earlier, closings of new and existing homes grew year-over-year in March.
Pricing and Mortgage Trends
In March, the average value of new homes saw a 66.7% surge year-over-year as it grew to $902,827 per unit. This gain is smaller than the more than twofold lift in February year-over-year.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. The average mortgage size rose to $529,571 in March, marking a 6.5% hike compared with a year earlier. Average mortgage size jumped 68.1% in February 2016 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes gained from 67.1% in March 2015 to 96.4% of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings fell to 3.6% of closings from 32.9% of closings.
The average unit size of newly sold homes climbed 17.6% year-over-year to 1,652 square feet in March 2016. The average size of newly sold homes moved from 630 square feet in February 2015 to 2,166 square feet in February 2016. An increase was also seen in February 2016 when the average size of new homes sold grew more than threefold to 2,166 square feet.
Foreclosures and real estate owned (REO) closings increased in March from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings represented 10.5% of existing home closings, up from 9.2% a year earlier. The percentage of existing home closings involving foreclosures went from 4.6% in March 2015 to 4.2% in March 2016 and REO closings as a percentage of existing home closings jumped to 6.3% from 4.6%.