Closings of new homes climbed year-over-year in March in the Lake Havasu City, AZ market, shifting up after a drop in February 2016. New home closings saw a rise of 6.2% from the year earlier to 17. In comparison, new home closings in the same month last year saw a 23.8% fall year-over-year in February.
A total of 251 new homes were sold during the 12 months that ended in March, up from 250 for the year that ended in February.
Closings of new homes accounted for 3.7% of total closings, consistent with last year's figures. After dropping in February from a year earlier, closings of new and existing homes increased year-over-year in March.
Pricing and Mortgage Trends
The average price of newly sold homes dropped 5.0% year-over-year in March to $244,826 per unit. This fall is a drop off from the 21.6% decline in February from a year earlier.
The average mortgage size on newly sold homes saw a drop year-over-year in contrast to new home prices. In March 2016, there was a 4.0% drop in the average mortgage size on new homes to $190,356. In February 2016, average mortgage size on newly sold homes saw a 13.4% fall from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings jumped from 93.8% of new closings in March 2015 to all of closings in March 2016. Conversely, the share of new home closings belonging to attached units declined to no part of closings from 6.2% of closings.
There was a 4.4% boost year-over-year in the average unit size of newly sold homes to 1,854 square feet in March 2016. The average size of newly sold homes moved from 1,878 square feet in February 2015 to 1,793 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in March, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 16.9% of existing closings, lower than 22.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.3% in March from 9.5% a year earlier while REO closings as a percentage of existing home closings fell to 9.6% from 13.0% a year earlier.
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