New home closings dropped year-over-year in May in the Seattle, WA market, but with a percentage decline not as steep as April 2016, there are hints that the market may be stabilizing. There was a change in new home closings from 635 a year earlier to 630 in May 2016. This compares with a 18.8% fall in April from the year earlier.
A total of 7,389 new homes were sold during the 12 months that ended in May, down from 7,394 for the year that ended in April.
New home closings represented 8.6% of overall housing closings. They made up 8.9% of closings a year earlier. After dropping in April from a year earlier, closings of new and existing homes increased year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes was $590,799 per unit in May, up 10.5%from a year earlier. This boost is an improvement over the 9.2% lift in April 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 May 2016, there was a 9.6% boost in the average mortgage size, reaching $462,978. In April 2016, average mortgage size on newly sold homes saw a 6.3% surge year-over-year from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 80.8% of new home closings to 81.3% of closings while attached units have gone from 19.2% of closings to 18.7% of closings.
The average unit size of newly sold homes rose 3.0% year-over-year to 2,648 square feet in May 2016. In April, the average size of new homes sold went from 2,591 square feet a year earlier to 2,522 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 12.3% of existing closings, lower than 15.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.8% in May from 7.2% a year earlier while REO closings as a percentage of existing home closings slid to 6.5% from 8.7% a year earlier.