In the Phoenix, AZ market in December, new home closings jumped year-over-year, and the percentage surge, which was better than November 2015, suggested the market may be improving. New home closings saw a 30.4% hike from a year earlier to 1,171. This came after a 17.2% boost year-over-year in November.
A total of 11,168 new homes were sold during the 12 months that ended in December, up from 10,895 for the year that ended in November.
New home closings represented 12.5% of overall housing closings. This is better than the 10.9% of closings a year earlier. For new and existing homes, closings rose year-over-year in December after also increasing in November year-over-year.
Pricing and Mortgage Trends
In December, the average price of newly sold homes dropped 1.2% year-over-year to $328,468 per unit. This drop is a drop off from the 4.7% fall in November from a year earlier.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. Average mortgage size declined by 5.7% from a year earlier, settling at $262,020 in December. In November 2015, average mortgage size on newly sold homes saw a 2.1% decline from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings increased from 5.2% of all closings in December 2014 to 6.7% of closings in December 2015. Conversely, the share belonging to single-family homes slid to 93.3% of closings from 94.8% of closings.
The average unit size of newly sold homes went from 2,493 square feet in December 2014 to 2,513 square feet in December 2015. In November 2015, the average size of newly sold homes fell 3.1% from the year earlier. The average size of newly sold homes moved from 2,532 square feet in November 2014 to 2,453 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in December, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 13.3% of closings, below 17.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.6% in December from 6.8% a year earlier while REO closings as a percentage of existing home closings declined to 7.6% from 10.5% a year earlier.