In the Prescott, AZ market, closings of new homes dropped year-over-year in May, but with a percentage decline less steep than April 2016, there are signals the market may be evening out. New home closings saw a 12.5% fall from a year earlier to 42. In comparison, new home closings in the same month last year saw a 35.8% drop year-over-year in April.
A total of 539 new homes were sold during the 12 months that ended in May, down from 545 for the year that ended in April.
New home closings made up 9.1% of overall housing closings. A year earlier, new home closings represented 9.7% of total closings. Closings of new and existing homes slid year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes increased year-over-year to $333,002 in May, up 11.6% from last year. This rise is smaller than the 26.9% boost in April year-over-year.
For newly sold homes, the average mortgage size saw a bump year-over-year along with new home prices. The average mortgage size saw a 44.2% lift year-over-year to $268,869 in May. In April 2016, average mortgage size on newly sold homes saw a 48.8% surge year-over-year 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 climbed from 83.3% in May 2015 to 97.6% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings slid to 2.4% of closings from 16.7% of closings.
The average unit size of newly sold homes went from 1,945 square feet in May 2015 to 1,963 square feet in May 2016. In April 2016, the average size of newly sold homes grew 1.6% from the year earlier. The average size of newly sold homes moved from 1,896 square feet in April 2015 to 1,926 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 7.1% of closings, below 10.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 3.6% in May from 5.1% a year earlier while REO closings as a percentage of existing home closings sank to 3.6% from 5.6% a year earlier.