New home closings in the Portland, OR market gained year-over-year in May, moving north after a decline in April 2016. There was a 21.6% rise in new home closings from a year earlier. This came after a 10.0% decline year-over-year in April.
A total of 4,605 new homes were sold during the 12 months that ended in May, up from 4,536 for the year that ended in April.
Of 4,775 total closings, 389 were of new homes. This is better than the 6.8% of closings a year earlier. Closings of new and existing homes stayed level after declining in April year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price increased 8.9% year-over-year in May to $423,510 per unit. This hike is smaller than the 17.5% boost in April year-over-year.
The average mortgage size on newly sold homes rose year-over-year along with the average price of new homes. In May 2016, the average mortgage size was $343,349, up 7.5% from a year earlier. In April 2016, average mortgage size rose 15.0% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units climbed from 10.0% of closings in May 2015 to 15.7% of closings in May 2016. At the same time, the share belonging to single-family homes slid to 84.3% of closings from 90.0% of closings.
The average unit size of newly sold homes fell 2.6% year-over-year to 2,197 square feet in May 2016. In April, the average size of new homes sold went from 2,186 square feet a year earlier to 2,288 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 10.5% of existing home closings, down from 12.0% a year earlier. The percentage of existing home closings involving foreclosures went from 5.5% in May 2015 to 5.4% in May 2016 and REO closings as a percentage of existing home closings slid to 5.1% from 6.5% a year earlier.