Closings of new homes in the Phoenix, AZ market fell year-over-year in July, curving down after an increase in June 2016. New home closings saw a fall of 18.1% from the year earlier to 884. This came on the heels of a 7.4% rise year-over-year in June.
A total of 12,554 new homes were sold during the 12 months that ended in July, down from 12,750 for the year that ended in June.
New home closings accounted for 9.8% of overall housing closings. This is a fall 10.9% of closings a year earlier. Following a year-over-year decline in June, closings of new and existing homes also sank year-over-year in July.
Pricing and Mortgage Trends
In July, there was a 1.2% gain year-over-year in the average price of newly sold homes, reaching $333,323 per unit. This bump follows a move from $337,345 per unit in June 2015 to $339,570 in June 2016.
In July 2016, average mortgage size on newly sold homes moved from $272,792 to $275,077 from July 2015. Average mortgage size gained 1.7% in June 2016 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. The share of new home closings belonging to attached units rose from 7.1% of closings in July 2015 to 8.4% of closings in July 2016. At the same time, the share belonging to single-family homes sank to 91.6% of closings from 92.9% of closings.
There was a 5.9% decline year-over-year in the average unit size of newly sold homes to 2,272 square feet in July 2016. The average size of newly sold homes moved from 2,470 square feet in June 2015 to 2,374 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 13.0% of closings, below 14.1% a year earlier. The percentage of existing home closings involving foreclosures went from 6.4% in July 2015 to 6.6% in July 2016 and REO closings as a percentage of existing home closings slid to 6.4% from 7.7% a year earlier.