In the Portland, OR market in July, new home closings slid year-over-year, a downhill move after a rise in June 2015. Closings declined 20.1% from a year earlier to 279. This came after a 22.2% climb year-over-year in June.
A total of 3,548 new homes were sold during the 12 months that ended in July, down from 3,618 for the year that ended in June.
New home closings represented 5.2% of overall housing closings. This is down from the a year earlier when new home closings represented 7.7% of total closings. For new and existing homes, closings increased year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
In July, the average price of newly sold homes grew 7.5% year-over-year to $390,753 per unit. This boost is higher than the 4.1% surge in June year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In July 2015, the average mortgage size was $322,016, a 5.8% hike from a year earlier. Average mortgage size went from $309,729 in June 2014 to $311,813 in June 2015.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 91.1% of new home closings to 91.8% of closings while attached units have gone from 8.9% of closings to 8.2% of closings.
There was a 7.8% drop year-over-year in the average unit size of newly sold homes to 2,140 square feet in July 2015. For newly sold homes, an average size fall contrasting with an average price surge was also seen in June 2015 when the average size of newly sold homes dropped 7.9% to 2,131 square feet. In June, the average size of new homes sold went from 2,314 square feet a year earlier to 2,131 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 12.5% of closings, below 16.3% a year earlier. The percentage of existing home closings involving foreclosures slid to 6.0% in July from 8.9% a year earlier and REO closings moved from 7.4% of existing home closings in July 2014 to 6.4% in July 2015.