In the Tucson, AZ market in April, new home closings slid year-over-year, shifting downward off a lift in March 2016. There was a 13.2% drop in new home closings from a year earlier. This came on the heels of a 21.9% boost 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 a year earlier when new home closings accounted for 7.9% of total closings. Closings of new and existing homes rose year-over-year in April after also rising in March year-over-year.
Pricing and Mortgage Trends
The average price of new homes dropped by 2.3% year-over-year to $260,042 per unit in April. This decline is a drop off from the 6.3% drop in March from a year earlier.
The average mortgage size on newly sold homes saw a drop year-over-year in contrast to new home prices. Average mortgage size slid by 1.9% from a year earlier, settling at $222,264 in April. Average mortgage size went from $226,194 in March 2015 to $224,389 in March 2016.
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 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. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 92.0% of closings from 96.5% of closings.
There was a 3.1% drop 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 drop from a year earlier in April, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 14.3% of existing home closings, below 22.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.0% in April from 10.8% a year earlier while REO closings as a percentage of existing home closings fell to 8.3% from 11.8% a year earlier.