In July, closings of new homes in the Prescott, AZ market jumped year-over-year, and the percentage gain was sharper than June 2016, hinting that the market may be strengthening. There was a 56.8% jump in new home closings from a year earlier. This came after a 19.5% rise year-over-year in June.
A total of 569 new homes were sold during the 12 months that ended in July, up from 548 for the year that ended in June.
New home closings made up 11.4% of overall housing closings. This is better than the 7.2% of closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes dropped year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year 12.2% in July to $334,747 per unit. This boost is smaller than the 24.3% bump in June year-over-year.
For newly sold homes, average mortgage size moved from $253,905 in July 2015 to $254,792 in July 2016. In June 2016, average mortgage size climbed 12.1% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units grew from 2.7% of closings in July 2015 to 8.6% of closings in July 2016. Conversely, the share belonging to single-family homes dropped to 91.4% of closings from 97.3% of closings.
For all new homes sold, the average unit size declined 13.4% year-over-year to 1,702 square feet in July 2016. In June, the average size of new homes sold went from 1,900 square feet a year earlier to 2,352 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 11.3% of existing closings, lower than 13.1% a year earlier. The percentage of existing home closings involving foreclosures rose to 7.7% in July from 5.6% a year earlier while REO closings as a percentage of existing home closings fell to 3.5% from 7.5% a year earlier.