In the Anchorage, AK market in June, new home closings dropped year-over-year, but with a percentage fall less steep than May 2016, there are signals the market may be evening out. Closings declined 28.9% from a year earlier to 32. This came after a 29.3% decline year-over-year in May.
A total of 491 new homes were sold during the 12 months that ended in June, down from 504 for the year that ended in May.
New home closings made up 3.6% of overall housing closings. This is down from the 4.8% of closings a year earlier. Following a year-over-year rise in May, closings of new and existing homes dropped year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year in June to $431,082 per unit, a rise of 7.2%. This surge compares to a 12.9% decline in May from a year earlier.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. In June 2016, average mortgage size grew 8.4% from a year earlier to $389,634. In May 2016, average mortgage size on newly sold homes saw a 11.6% drop from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes gained from 77.8% in June 2015 to 84.4% of closings in June 2016. Meanwhile, attached units as a percentage of all new home closings declined to 15.6% of closings from 22.2% of closings.
For all new homes sold, the average unit size jumped 12.8% year-over-year to 2,433 square feet in June 2016. The average size of newly sold homes moved from 2,333 square feet in May 2015 to 2,164 square feet in May 2016.
Foreclosures and real estate owned (REO) closings rose in June from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 7.5% of existing home closings, higher than 7.4% a year earlier. The percentage of existing home closings involving foreclosures stayed at 3.0% of closings in June from a year earlier and REO closings as a percentage of existing home closings stayed level at 4.4%.