There was an increase in new home closings in the Phoenix, AZ market in August year-over-year, moving north after staying level in July from the year earlier. New home closings climbed by 5.4% from last year to 904. Closings were level in July from the year earlier.
A total of 10,167 new homes were sold during the 12 months that ended in August, up from 10,121 for the year that ended in July.
New home closings represented 10.5% of overall housing closings. A year ago, new home closings accounted for 10.9%. Following a year-over-year increase in July, closings of new and existing homes also gained year-over-year in August.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year 2.2% in August to $345,191 per unit. This boost compares to a 1.6% fall in July from a year earlier.
Average mortgage size on new homes went from $270,570 in August 2014 to $272,212 in August 2015. Average mortgage size dropped 1.8% in July 2015 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. The share of new home closings belonging to attached units jumped from 4.1% of closings in August 2014 to 8.0% of closings in August 2015. Meanwhile, single-family home closings as a percentage of all new home closings declined to 92.0% of closings from 95.9% of closings.
There was a 2.8% decline year-over-year in the average unit size of newly sold homes to 2,479 square feet in August 2015. In July, the average size of new homes sold went from 2,537 square feet a year earlier to 2,480 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 14.3% of closings, below 19.8% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.8% in August from 8.5% a year earlier while REO closings as a percentage of existing home closings dropped to 8.4% from 11.3% a year earlier.