In the Lake Havasu City, AZ market, closings of new homes increased year-over-year in August,. Closings stood at 21 in August after being 16 a year earlier and remaining unchanged at 14 in July from a year earlier.
A total of 223 new homes were sold during the 12 months that ended in August, up from 218 for the year that ended in July.
New home closings represented 5.9% of overall housing closings. A year ago, new home closings represented 4.9%. After dropping in July from a year earlier, closings of new and existing homes rose year-over-year in August.
Pricing and Mortgage Trends
In August, the average price of newly sold homes sank 14.9% year-over-year to $218,878 per unit. This fall compares to a 22.7% boost in July year-over-year.
Average mortgage size on new homes fell year-over-year in contrast to new home prices. It declined to $160,519 in August, a 26.0% drop. Average mortgage size on new homes went from $165,315 in July 2014 to $218,918 in July 2015.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from 93.8% in August 2014 to all of closings in August 2015. At the same time, the share of new home closings belonging to attached units declined to no part of closings from 6.2% of closings.
For all new homes sold, the average unit size grew 1.4% year-over-year to 1,720 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 21.7% of existing home closings, below 25.3% a year earlier. The percentage of existing home closings involving foreclosures rose to 11.3% in August from 8.4% a year earlier while REO closings as a percentage of existing home closings declined to 10.4% from 16.9% a year earlier.
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