In the Olympia, WA market, new home closings dropped year-over-year in January, curving down after an increase in December 2015. New home closings saw a 30.6% drop from a year earlier to 34. This followed a 9.1% climb year-over-year in December.
A total of 634 new homes were sold during the 12 months that ended in January, down from 649 for the year that ended in December.
Out of all housing closings, new home closings made up 9.8%. This is down from the 14.2% of closings a year earlier. After a fall in December year-over-year, new and existing home closings stayed level in January.
Pricing and Mortgage Trends
The average price of newly sold homes rose year-over-year 1.6% in January to $317,794 per unit. This gain is smaller than the 8.6% bump in December year-over-year.
There was a gain year-over-year in the average mortgage size on new homes along with new home prices. In January 2016, the average mortgage size was $278,445, up 11.2% from a year earlier. In December 2015, average mortgage size on newly sold homes saw a 5.4% gain year-over-year from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 98.0% of new home closings to 97.1% of closings while attached units have gone from 2.0% of closings to 2.9% of closings.
For all new homes sold, the average unit size dropped 3.8% year-over-year to 2,198 square feet in January 2016. This fall was opposite the price lift, a pattern also seen in December 2015 when the average size of newly sold homes slid 5.2% to 2,220 square feet. The average size of newly sold homes moved from 2,343 square feet in December 2014 to 2,220 square feet in December 2015.
Foreclosures and real estate owned (REO) closings decreased in January from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings represented 34.5% of existing home closings, down from 54.2% a year earlier. The percentage of existing home closings involving foreclosures slid to 19.2% in January from 26.1% a year earlier while REO closings as a percentage of existing home closings sank to 15.3% from 28.1% a year earlier.