Closings of new homes in the Tucson, AZ market dropped year-over-year in April, drawing a downward slope off of a rise in March 2016. There was a 13.2% decline in new home closings from a year earlier. This came after a 21.9% climb year-over-year in March.
A total of 1,723 new homes were sold during the 12 months that ended in April, down from 1,742 for the year that ended in March.
As a percentage of overall housing closings, new home closings accounted for 6.1%. This is down from the 7.9% of closings a year earlier. Closings of new and existing homes gained year-over-year in April after also rising in March year-over-year.
Pricing and Mortgage Trends
In April, the average price of newly sold homes declined year-over-year to $260,042 per unit, marking a 2.3% drop from the year-earlier figure. This decline is a drop off from the 6.3% fall in March from a year earlier.
The average mortgage size on newly sold homes sank year-over-year in contrast to the average price of new homes. In April 2016, there was a 1.9% drop in the average mortgage size on new homes to $222,264. It went from $226,194 to $224,389 from March 2015 to March 2016.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units grew from 3.5% of closings in April 2015 to 8.0% of closings in April 2016. At the same time, the share belonging to single-family homes declined to 92.0% of closings from 96.5% of closings.
There was a 3.1% fall year-over-year in the average unit size of newly sold homes to 2,101 square feet in April 2016. In March, the average size of new homes sold went from 2,207 square feet a year earlier to 2,022 square feet. A decline was also seen in March 2016 when the average size of new homes sold slid 8.4% to 2,022 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 14.3% of existing home closings, below 22.6% a year earlier. The percentage of existing home closings involving foreclosures sank to 6.0% in April from 10.8% a year earlier while REO closings as a percentage of existing home closings declined to 8.3% from 11.8% a year earlier.