New home closings in the Spokane, WA market fell year-over-year in June, and there were hints of weakening market conditions with a percentage decline steeper than that of May 2016. New home closings saw a fall of 63.5% from the year earlier to 31. In comparison, new home closings in the same month last year saw a 44.4% decline year-over-year in May.
A total of 570 new homes were sold during the 12 months that ended in June, down from 624 for the year that ended in May.
Out of all housing closings, new home closings accounted for 3.2%. This is down from the a year earlier when new home closings represented 8.0% of total closings. Following a year-over-year rise in May, closings of new and existing homes fell year-over-year in June.
Pricing and Mortgage Trends
The average price of newly sold homes increased year-over-year 1.2% in June to $288,962 per unit. This bump is smaller than the 13.6% rise in May year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. Average mortgage size jumped 5.9% to $266,273 in June from a year earlier. In May 2016, average mortgage size grew 6.9% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes increased from 95.3% in June 2015 to all of closings in June 2016. Conversely, the share of new home closings belonging to attached units sank to no part of closings from 4.7% of closings.
There was a 9.2% drop year-over-year in the average unit size of newly sold homes to 1,975 square feet in June 2016. In May, the average size of new homes sold went from 1,974 square feet a year earlier to 1,963 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 13.3% of existing home closings, below 17.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.9% in June from 8.6% a year earlier while REO closings as a percentage of existing home closings slid to 7.4% from 8.8% a year earlier.