In June, there was an increase in closings of new homes in the Albuquerque, NM market year-over-year, and with a stronger rise than May 2015, there are hints the market may be bolstering. Closings climbed 15.6% from a year earlier to 126. This followed a 4.0% jump year-over-year in May.
A total of 1,230 new homes were sold during the 12 months that ended in June, up from 1,213 for the year that ended in May.
New home closings accounted for 7.4% of overall closings, unchanged from a year earlier. After dropping in May from a year earlier, closings of new and existing homes increased year-over-year in June.
Pricing and Mortgage Trends
Average price of newly sold homes had a 5.2% rise year-over-year to $237,895 per unit in June. This bump compares to a 4.7% drop in May from a year earlier.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 3.8% hike year-over-year to $212,610 in June. In May 2015, average mortgage size fell 2.0% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings climbed from 92.7% of new closings in June 2014 to 96.0% of closings in June 2015. Meanwhile, attached units as a percentage of all new home closings sank to 4.0% of closings from 7.3% of closings.
For all new homes sold, the average unit size gained 7.8% year-over-year to 2,112 square feet in June 2015. In May, the average size of new homes sold went from 2,179 square feet a year earlier to 2,164 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 18.2% of existing home closings, down from 24.1% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.9% in June from 10.3% a year earlier while REO closings as a percentage of existing home closings sank to 12.2% from 13.8% a year earlier.