New home closings dropped year-over-year in May in the Lake Havasu City, AZ market, and the market seemed to be worsening in light of the percentage decline steeper than April 2016. There was a 30.8% decline in new home closings from a year earlier. This came on the heels of a 26.9% drop year-over-year in April.
A total of 242 new homes were sold during the 12 months that ended in May, down from 250 for the year that ended in April.
As a percentage of overall housing closings, new home closings represented 4.2%. This is a drop 5.8% of closings a year earlier. For new and existing homes, closings fell in May after also declining in April year-over-year.
Pricing and Mortgage Trends
In May, there was a 4.0% decline year-over-year in the average per-unit price of newly sold homes, settling at $215,668. This fall compares to a 6.8% lift in April year-over-year.
For newly sold homes, the average mortgage size jumped year-over-year in contrast to new home prices. It rose to $197,429 in May, a 11.1% boost. In April 2016, average mortgage size dropped 9.8% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. Attached unit closings gained from 3.8% of all closings in May 2015 to 5.6% of closings in May 2016. At the same time, the share belonging to single-family homes dropped to 94.4% of closings from 96.2% of closings.
There was a 2.5% decline year-over-year in the average unit size of newly sold homes to 1,761 square feet in May 2016. The average size of newly sold homes moved from 1,832 square feet in April 2015 to 1,874 square feet in April 2016.
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. Out of all existing home closings, foreclosures combined with REO closings represented 13.8% of closings, below 17.9% a year earlier. The percentage of existing home closings involving foreclosures sank to 3.9% in May from 8.6% a year earlier and REO closings moved from 9.3% of existing home closings in May 2015 to 9.9% in May 2016.