There was an increase in new home closings in the Tucson, AZ market in November year-over-year, rebounding from a year-over-year drop in October 2015. New home closings saw a climb of 8.6% from the year earlier to 114. This followed a 32.9% fall year-over-year in October.
A total of 1,254 new homes were sold during the 12 months that ended in November, up from 1,245 for the year that ended in October.
As a percentage of overall housing closings, new home closings made up 9.2% of overall housing closings. They made up 8.5% of closings a year earlier. After falling in October from a year earlier, closings of new and existing homes stayed steady in November.
Pricing and Mortgage Trends
In November, the average price of newly sold homes gained 7.3% year-over-year to $289,979 per unit. This gain is smaller than the 8.4% lift in October year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size saw a 5.9% gain year-over-year to $243,371 in November. In October 2015, average mortgage size gained 6.3% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes increased from 95.2% in November 2014 to 96.5% of closings in November 2015. At the same time, the share of new home closings belonging to attached units sank to 3.5% of closings from 4.8% of closings.
There was a 6.9% rise year-over-year in the average unit size of newly sold homes to 2,489 square feet in November 2015. In October, the average size of new homes sold went from 2,275 square feet a year earlier to 2,853 square feet. An increase was also seen in October 2015 when the average size of new homes sold climbed 25.4% to 2,853 square feet.
Foreclosures and real estate owned (REO) closings fell in November from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 25.4% of closings, below 28.1% a year earlier. The percentage of existing home closings involving foreclosures slid to 11.8% in November from 13.7% a year earlier and REO closings moved from 14.4% of existing home closings in November 2014 to 13.6% in November 2015.