In May, the Lake Havasu City, AZ market saw a decline year-over-year in new home closings, and the percentage drop that was steeper than April 2016 gave implications of worsening market conditions. New home closings saw a 30.8% decline from a year earlier to 18. This was after the housing market saw a 26.9% decline year-over-year in April.
A total of 242 new homes were sold during the 12 months that ended in May, down from 250 for the year that ended in April.
Out of all housing closings, new home closings accounted for 4.2%. This is a decline 5.8% of closings a year earlier. Closings of new and existing homes sank year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes sank 4.0% year-over-year in May to $215,668 per unit. This drop compares to a 6.8% gain in April year-over-year.
The average mortgage size on new homes moved north year-over-year in contrast to new home prices. It grew to $197,429 in May, a 11.1% bump. Average mortgage size declined 9.8% in April 2016 from a year earlier.
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. Attached unit closings increased from 3.8% of all closings in May 2015 to 5.6% of closings in May 2016. Meanwhile, single-family home closings as a percentage of all new home closings fell to 94.4% of closings from 96.2% of closings.
The average unit size of newly sold homes sank 2.5% year-over-year to 1,761 square feet in May 2016. In April, the average size of new homes sold went from 1,832 square feet a year earlier to 1,874 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 13.8% of existing home closings, down from 17.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 3.9% in May from 8.6% a year earlier and REO closings moved from 9.3% of existing home closings in May 2015 to 9.9% in May 2016.
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