New home closings dropped year-over-year in September in the Tucson, AZ market, and the percentage fall was steeper than August 2015, giving suggestion the market may be worsening. There was a 20.6% decline in new home closings from a year earlier. This followed a 19.3% drop year-over-year in August.
A total of 1,286 new homes were sold during the 12 months that ended in September, down from 1,321 for the year that ended in August.
As a percentage of overall housing closings, new home closings represented 8.6%. This is a fall 11.8% of closings a year earlier. For new and existing homes, closings grew year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
In September, the average price of newly sold homes rose 1.3% year-over-year to $274,821 per unit. This bump compares to a 3.1% decline in August from a year earlier.
The average mortgage size on newly sold homes saw a boost year-over-year along with new home prices. Average mortgage size jumped 3.5% to $238,415 in September from a year earlier. In August 2015, average mortgage size slid 11.9% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings grew from 0.6% of all closings in September 2014 to 4.4% of closings in September 2015. At the same time, the share belonging to single-family homes declined to 95.6% of closings from 99.4% of closings.
The average unit size of newly sold homes sank 6.3% year-over-year to 2,127 square feet in September 2015. The average size of newly sold homes moved from 2,292 square feet in August 2014 to 2,208 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 19.5% of existing home closings, below 31.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 9.9% in September from 14.8% a year earlier while REO closings as a percentage of existing home closings declined to 9.6% from 16.7% a year earlier.