In November, there was a drop year-over-year in new home closings in the Spokane, WA market, and there were signals the market may be weakening with a percentage decline steeper than October 2015. There was a 29.8% fall in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 19.6% decline year-over-year in October.
A total of 644 new homes were sold during the 12 months that ended in November, down from 658 for the year that ended in October.
New home closings made up 6.1% of overall housing closings. This is a decline 8.0% of closings a year earlier. Closings of new and existing homes slid year-over-year in November after remaning steady in October year-over-year.
Pricing and Mortgage Trends
The average value for new homes sold in November 2015 was $276,071, a move from $274,798 a year earlier. This came after a 9.7% lift in October year-over-year.
The average mortgage size on newly sold homes saw a drop year-over-year in contrast to new home prices. In November 2015, the average mortgage size on newly sold homes saw a 1.1% decline from a year earlier. In October 2015, average mortgage size jumped 11.6% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes increased from 91.5% in November 2014 to 97.0% of closings in November 2015. Meanwhile, attached units as a percentage of all new home closings slid to 3.0% of closings from 8.5% of closings.
There was a 6.7% surge year-over-year in the average unit size of newly sold homes to 2,272 square feet in November 2015. In October, the average size of new homes sold went from 2,065 square feet a year earlier to 2,219 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 17.6% of existing home closings, below 26.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 6.3% in November from 12.0% a year earlier while REO closings as a percentage of existing home closings dropped to 11.2% from 14.8% a year earlier.