Closings of new homes in the Spokane, WA market dropped year-over-year in May, and the market seemed to be worsening in light of the percentage drop steeper than April 2016. New home closings saw a 44.4% drop from a year earlier to 30. This came after a 31.4% decline year-over-year in April.
A total of 623 new homes were sold during the 12 months that ended in May, down from 647 for the year that ended in April.
New home closings made up 3.0% of overall housing closings. This is down from the 5.8% of closings a year earlier. Closings of new and existing homes climbed year-over-year in May following a drop in April year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 13.6% rise year-over-year in May to $280,922 per unit. This boost is an improvement over the 7.2% surge in April year-over-year.
Average mortgage size on new homes increased year-over-year along with new home prices. In May 2016, average mortgage size climbed 6.9% from a year earlier to $239,586. Average mortgage size climbed 16.0% in April 2016 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units gained from 5.6% of closings in May 2015 to 6.7% of closings in May 2016. Conversely, the share belonging to single-family homes fell to 93.3% of closings from 94.4% of closings.
The average unit size of newly sold homes went from 1,974 square feet in May 2015 to 1,963 square feet in May 2016. In April 2016, the average size of newly sold homes declined 2.0% from the year earlier. The average size of newly sold homes moved from 2,117 square feet in April 2015 to 2,075 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 16.6% of existing closings, lower than 19.1% a year earlier. The percentage of existing home closings involving foreclosures went from 9.3% in May 2015 to 9.8% in May 2016 and REO closings as a percentage of existing home closings sank to 6.8% from 9.9% a year earlier.