There was a rise in new home closings in the Prescott, AZ market in December year-over-year, but the increase was less than November 2015. New home closings moved from 31 a year earlier to 46 after the figure moved from 14 in November 2014 to 30 in November 2015.
A total of 470 new homes were sold during the 12 months that ended in December, up from 455 for the year that ended in November.
Of 389 total closings, 46 were of new homes. This marks a rise from 8.6% of total closings a year earlier. Closings of new and existing homes jumped in December after staying steady in November from a year earlier.
Pricing and Mortgage Trends
In December, there was a 48.8% lift year-over-year in the average price of newly sold homes, reaching $390,177 per unit. This bump is better than the 24.0% rise in November year-over-year.
Average mortgage size on new homes rose year-over-year along with new home prices. The average mortgage size rose to $246,398 in December, marking a 25.0% surge compared with a year earlier. Average mortgage size on new homes went from $215,080 in November 2014 to $265,995 in November 2015.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units gained from no part of closings in December 2014 to 6.5% of closings in December 2015. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 93.5% of closings from all of closings.
The average unit size of newly sold homes sank 2.8% year-over-year to 1,900 square feet in December 2015. This decline was opposite the price gain, a pattern also seen in November 2015 when the average size of newly sold homes dropped 12.4% to 1,630 square feet. The average size of newly sold homes moved from 1,860 square feet in November 2014 to 1,630 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 14.3% of existing closings, lower than 19.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.8% in December from 10.9% a year earlier while REO closings as a percentage of existing home closings stayed level at 8.5%.