In January, the Spokane, WA market saw a drop year-over-year in new home closings, and the market seemed to be worsening in light of the percentage decline steeper than December 2015. New home closings saw a decline of 54.1% from the year earlier to 17. This came on the heels of a 31.4% fall year-over-year in December.
A total of 595 new homes were sold during the 12 months that ended in January, down from 615 for the year that ended in December.
Out of all housing closings, new home closings represented 3.5%. This is down from the 6.6% of closings a year earlier. After rising year-over-year in December, closings of new and existing homes fell year-over-year in January.
Pricing and Mortgage Trends
In January, the average price of newly sold homes climbed year-over-year to $289,993 per unit, a 11.9% hike. This boost compares to a 4.9% drop in December from a year earlier.
There was a lift year-over-year in the average mortgage size on new homes along with new home prices. In January 2016, the average mortgage size was $249,919, up 12.1% from a year earlier. Average mortgage size fell 6.6% in December 2015 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings grew from 86.5% of new closings in January 2015 to all of closings in January 2016. Meanwhile, attached units as a percentage of all new home closings slid to no part of closings from 13.5% of closings.
There was a 11.0% hike year-over-year in the average unit size of newly sold homes to 2,183 square feet in January 2016. In December, the average size of new homes sold went from 2,237 square feet a year earlier to 1,901 square feet.
Foreclosures and real estate owned (REO) closings decreased in January from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings represented 31.8% of existing home closings, below 35.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 16.0% in January from 18.7% a year earlier while REO closings as a percentage of existing home closings dropped to 15.8% from 17.0% a year earlier.