In September, the Anchorage, AK market saw a fall year-over-year in new home closings, but the percentage fall was not as steep as August 2015, suggesting market improvement. Closings declined 9.7% from a year earlier to 28. This came after a 47.3% drop year-over-year in August.
A total of 447 new homes were sold during the 12 months that ended in September, down from 450 for the year that ended in August.
New home closings accounted for 3.4% of overall housing closings. A year earlier, new home closings represented 3.9% of total closings. New and existing home closings gained in September after a remaining level in August from a year earlier.
Pricing and Mortgage Trends
In September, the average per-unit price of new homes fell by 11.9% year-over-year to $365,779. This fall is larger than the 10.1% decline in August from a year earlier.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In September 2015, the average mortgage size on newly sold homes saw a 14.3% fall from a year earlier. In August 2015, average mortgage size sank 6.2% 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. The share of new home closings belonging to single-family homes rose from 80.6% in September 2014 to 82.1% of closings in September 2015. Meanwhile, attached units as a percentage of all new home closings fell to 17.9% of closings from 19.4% of closings.
The average unit size of newly sold homes grew 28.7% year-over-year to 3,054 square feet in September 2015. This lift was opposite the price fall, a pattern also seen in August 2015 when the average size of newly sold homes climbed 6.5% to 2,475 square feet. In August, the average size of new homes sold went from 2,325 square feet a year earlier to 2,475 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 8.6% of closings, below 11.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 2.8% in September from 5.0% a year earlier and REO closings moved from 6.2% of existing home closings in September 2014 to 5.8% in September 2015.