In the Olympia, WA market, new home closings grew year-over-year in September, but the market seemed to show signs of leveling out as the percentage gained was less than in August 2015. New home closings saw a 5.6% hike from a year earlier to 57. This came on the heels of a 14.8% hike year-over-year in August.
A total of 657 new homes were sold during the 12 months that ended in September, up from 654 for the year that ended in August.
New home closings represented 11.6% of overall housing closings. New home closings were 11.8% of overall closings last year. For new and existing homes, closings rose year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
In September, the average price of newly sold homes jumped 11.3% year-over-year to $318,866 per unit. This boost is smaller than the 15.4% surge in August year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In September 2015, the average mortgage size was $282,610, a 18.1% surge from a year earlier. Average mortgage size climbed 17.4% in August 2015 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in September 2015. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes grew 2.1% year-over-year to 2,282 square feet in September 2015. The average size of newly sold homes moved from 2,210 square feet in August 2014 to 2,371 square feet in August 2015. An increase in both the average size and price of newly sold homes was also seen in August 2015 when the average size jumped 7.3% to 2,371 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 22.1% of existing closings, lower than 35.4% a year earlier. The percentage of existing home closings involving foreclosures dropped to 9.2% in September from 13.9% a year earlier while REO closings as a percentage of existing home closings sank to 12.9% from 21.5% a year earlier.