In the Portland, OR market, new home closings fell year-over-year in January, a move downward following a hike in December 2015. There was a 3.1% fall in new home closings from a year earlier. This came after a 56.4% hike year-over-year in December.
A total of 4,285 new homes were sold during the 12 months that ended in January, down from 4,293 for the year that ended in December.
New home closings made up 7.9% of overall housing closings. This is down from the 9.4% of closings a year earlier. Closings of new and existing homes climbed year-over-year in January after also rising in December year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 6.5% rise year-over-year in January to $426,071 per unit. This hike is smaller than the 11.3% gain in December year-over-year.
The average mortgage size on newly sold homes gained year-over-year along with the average price of new homes. The average mortgage size rose to $336,157 in January, marking a 6.3% rise compared with a year earlier. In December 2015, average mortgage size climbed 10.0% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes climbed from 84.4% in January 2015 to 86.7% of closings in January 2016. Meanwhile, attached units as a percentage of all new home closings dropped to 13.3% of closings from 15.6% of closings.
For all new homes sold, the average unit size fell 5.1% year-over-year to 2,233 square feet in January 2016. For newly sold homes, an average size fall contrasting with an average price lift was also seen in December 2015 when the average size of newly sold homes declined 3.5% to 2,166 square feet. The average size of newly sold homes moved from 2,245 square feet in December 2014 to 2,166 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 18.6% of closings, below 19.2% a year earlier. The percentage of existing home closings involving foreclosures went from 8.6% in January 2015 to 9.1% in January 2016 and REO closings as a percentage of existing home closings slid to 9.5% from 10.6% a year earlier.