There was an increase in closings of new homes in the Phoenix, AZ market in April year-over-year, but with a less pronounced percentage bump than March 2016, there are signals of market stabilization. Closings climbed 6.5% from a year earlier to 967. This was after the housing market saw a 37.5% jump year-over-year in March.
A total of 12,180 new homes were sold during the 12 months that ended in April, up from 12,121 for the year that ended in March.
Out of all housing closings, new home closings made up 10.0%. This is an increase on a percentage basis, as new home closings were 7.9% of total closings a year ago. Following a year-over-year rise in March, closings of new and existing homes slid year-over-year in April.
Pricing and Mortgage Trends
Average value of new homes sold in April was $324,182 per unit, down 4.7% from a year earlier. This fall compares to a 3.3% boost in March year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. Average mortgage size fell 4.3% to $267,156 in April from a year earlier. Average mortgage size went from $273,992 in March 2015 to $271,253 in March 2016.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased from 3.3% of closings in April 2015 to 5.9% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 94.1% of closings from 96.7% of closings.
The average unit size of newly sold homes went from 2,489 square feet in April 2015 to 2,483 square feet in April 2016. In March 2016, the average size of newly sold homes sank 6.6% from the year earlier. The average size of newly sold homes moved from 2,477 square feet in March 2015 to 2,314 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 10.9% of existing home closings, down from 14.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.0% in April from 6.6% a year earlier while REO closings as a percentage of existing home closings declined to 6.9% from 8.3% a year earlier.