New home closings in the Boise City, ID market gained year-over-year in May, but the market seemed to show signs of evening out as the percentage increased was less than in April 2016. There was a 11.4% boost in new home closings from a year earlier. This followed a 17.7% jump year-over-year in April.
A total of 3,144 new homes were sold during the 12 months that ended in May, up from 3,114 for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 14.0% of closings, relatively stable from a year earlier. Following a year-over-year increase in April, closings of new and existing homes also increased year-over-year in May.
Pricing and Mortgage Trends
In May, there was a 8.0% surge year-over-year in the average price of newly sold homes, reaching $283,684 per unit. This lift is smaller than the 10.4% hike in April year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. Average mortgage size grew 7.9% to $243,115 in May from a year earlier. Average mortgage size increased 10.1% in April 2016 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. The share of new home closings belonging to single-family homes gained from 96.6% in May 2015 to 98.0% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings sank to 2.0% of closings from 3.4% of closings.
There was a 2.9% rise year-over-year in the average unit size of newly sold homes to 2,323 square feet in May 2016. In April, the average size of new homes sold went from 2,233 square feet a year earlier to 2,309 square feet. An increase in both the average size and price of newly sold homes was also seen in April 2016 when the average size rose 3.4% to 2,309 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 6.8% of existing home closings, down from 9.9% a year earlier. The percentage of existing home closings involving foreclosures went from 3.6% in May 2015 to 2.9% in May 2016 and REO closings as a percentage of existing home closings fell to 3.9% from 6.3% a year earlier.