In the Prescott, AZ market in August, closings of new homes slid year-over-year, but the market seemed to be signaling improvement with a percentage decline less steep than in July 2015. New home closings saw a 22.2% decline from a year earlier to 28. This was after the housing market saw a 40.0% drop year-over-year in July.
A total of 316 new homes were sold during the 12 months that ended in August, down from 324 for the year that ended in July.
Out of all housing closings, new home closings represented 6.3%. This is a fall 10.0% of closings a year earlier. For new and existing homes, closings gained year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes gained year-over-year 8.7% in August to $323,226 per unit. This surge compares to a 6.5% drop in July from a year earlier.
The average mortgage size on new homes moved north year-over-year along with new home prices. It grew to $241,077 in August, a 11.4% surge. Average mortgage size climbed 26.5% in July 2015 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in August 2015. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size jumped 44.2% year-over-year to 2,666 square feet in August 2015. In July, the average size of new homes sold went from 1,989 square feet a year earlier to 2,185 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 9.5% of existing home closings, down from 13.9% a year earlier. The percentage of existing home closings involving foreclosures fell to 3.8% in August from 5.9% a year earlier while REO closings as a percentage of existing home closings dropped to 5.7% from 8.0% a year earlier.