In the Honolulu, HI market in August, new home closings dropped year-over-year, and the percentage fall was more severe than July 2015, indicating the market may be worsening. Closings slid 77.1% from a year earlier to 16. In comparison, new home closings in the same month last year saw a 44.7% fall year-over-year in July.
A total of 924 new homes were sold during the 12 months that ended in August, down from 978 for the year that ended in July.
Out of all housing closings, new home closings made up 1.4%. This is a fall 7.1% of closings a year earlier. Closings of new and existing homes gained year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price sank 4.8% year-over-year in August to $590,470 per unit. This drop compares to a 1.6% hike in July year-over-year.
The average mortgage size on newly sold homes dropped year-over-year in contrast to the average price of new homes. Average mortgage size slid 11.7% to $474,680 in August from a year earlier. It went from $589,018 to $587,541 from July 2014 to July 2015.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units increased from 38.6% of closings in August 2014 to 56.2% of closings in August 2015. Meanwhile, single-family home closings as a percentage of all new home closings sank to 43.8% of closings from 61.4% of closings.
There was a 25.9% fall year-over-year in the average unit size of newly sold homes to 1,232 square feet in August 2015. The average size of newly sold homes moved from 1,735 square feet in July 2014 to 1,154 square feet in July 2015.
Foreclosures and real estate owned (REO) closings rose in August from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 20.8% of existing home closings, higher than 6.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 10.6% in August from 3.9% a year earlier while REO closings as a percentage of existing home closings jumped to 10.2% from 2.9%.