In the Portland, OR market in May, new home closings climbed year-over-year, an upward turn from a decline in April 2016. New home closings saw a 21.6% hike from a year earlier to 389. This followed a 10.0% fall year-over-year in April.
A total of 4,605 new homes were sold during the 12 months that ended in May, up from 4,536 for the year that ended in April.
Out of all housing closings, new home closings accounted for 8.1%. This is an increase on a percentage basis, as new home closings were 6.8% of total closings a year ago. After declining in April from a year earlier, closings of new and existing homes remained level in May.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes rose year-over-year to $423,510 in May, up 8.9% from last year. This surge is smaller than the 17.5% rise in April year-over-year.
Average mortgage size on new homes increased year-over-year along with new home prices. It grew to $343,349 in May, a 7.5% surge. In April 2016, average mortgage size on newly sold homes saw a 15.0% rise year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. Attached unit closings grew from 10.0% of all closings in May 2015 to 15.7% of closings in May 2016. Conversely, the share belonging to single-family homes fell to 84.3% of closings from 90.0% of closings.
There was a 2.6% drop year-over-year in the average unit size of newly sold homes to 2,197 square feet in May 2016. In April, the average size of new homes sold went from 2,186 square feet a year earlier to 2,288 square feet.
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. Combined, foreclosures plus REO closings accounted for 10.5% of existing home closings, below 12.0% a year earlier. The percentage of existing home closings involving foreclosures went from 5.5% in May 2015 to 5.4% in May 2016 and REO closings as a percentage of existing home closings fell to 5.1% from 6.5% a year earlier.