There was an increase in new home closings in the Prescott, AZ market in September year-over-year, rallying back from a fall in August 2015. New home closings saw a 10.8% hike from a year earlier to 41. This was after the housing market saw a 24.3% fall year-over-year in August.
A total of 339 new homes were sold during the 12 months that ended in September, up from 335 for the year that ended in August.
Of the total number of closings, new home closings made up 9.1%. A year ago, new home closings accounted for 8.6%. Following a year-over-year increase in August, closings of new and existing homes also jumped year-over-year in September.
Pricing and Mortgage Trends
For newly sold homes, the average price moved from $274,215 in September 2014 to $275,907 in September 2015. This was on the heels of a 4.5% surge in August year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. It jumped to $241,100 in September, a 13.1% bump. Average mortgage size gained 2.5% in August 2015 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 94.6% of new home closings to 95.1% of closings while attached units have gone from 5.4% of closings to 4.9% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 10.2% of existing home closings, down from 15.6% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.4% in September from 5.6% a year earlier while REO closings as a percentage of existing home closings slid to 5.8% from 9.9% a year earlier.