In the Olympia, WA market, closings of new homes slid year-over-year in July, and the market seemed to be weakening with a percentage drop steeper than in June 2016. There was a 40.6% fall in new home closings from a year earlier. This came after a 6.4% drop year-over-year in June.
A total of 662 new homes were sold during the 12 months that ended in July, down from 690 for the year that ended in June.
New home closings represented 7.2% of overall housing closings. This is down from the 12.4% of closings a year earlier. Closings of new and existing homes increased year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price grew 4.8% year-over-year in July to $329,553 per unit. This bump is smaller than the 5.8% lift in June year-over-year.
For newly sold homes, the average mortgage size climbed year-over-year along with new home prices. The average mortgage size saw a 9.0% rise year-over-year to $298,776 in July. In June 2016, average mortgage size on newly sold homes saw a 9.3% gain year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. Attached unit closings climbed from 1.4% of all closings in July 2015 to 4.9% of closings in July 2016. At the same time, the share belonging to single-family homes sank to 95.1% of closings from 98.6% of closings.
The average unit size of newly sold homes jumped 4.1% year-over-year to 2,450 square feet in July 2016. In June, the average size of new homes sold went from 2,382 square feet a year earlier to 2,335 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. Foreclosures and REO closings, taken together, represented 19.4% of existing closings, lower than 25.1% a year earlier. The percentage of existing home closings involving foreclosures dropped to 8.0% in July from 11.7% a year earlier while REO closings as a percentage of existing home closings declined to 11.4% from 13.3% a year earlier.