In September, the Phoenix, AZ market saw a drop year-over-year in new home closings, a move downward following a lift in August 2015. There was a 1.6% drop in new home closings from a year earlier. This came on the heels of a 5.5% jump year-over-year in August.
A total of 10,401 new homes were sold during the 12 months that ended in September, down from 10,416 for the year that ended in August.
Out of all housing closings, new home closings accounted for 10.3%. This is down from the a year earlier when new home closings represented 11.8% of total closings. Following a year-over-year increase in August, closings of new and existing homes also jumped year-over-year in September.
Pricing and Mortgage Trends
Average value of new homes sold in September was $324,583 per unit, down 3.0% from a year earlier. This decline compares to a 2.3% hike in August year-over-year.
For newly sold homes, the average mortgage size sank year-over-year in contrast to average price of new homes. It fell 4.7% in September from a year earlier to $262,600. Average mortgage size went from $270,418 in August 2014 to $272,526 in August 2015.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 93.3% of new home closings to 93.1% of closings while attached units have gone from 6.7% of closings to 6.9% of closings.
The average unit size of newly sold homes slid 3.3% year-over-year to 2,398 square feet in September 2015. In August, the average size of new homes sold went from 2,549 square feet a year earlier to 2,482 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. Combined, foreclosures plus REO closings accounted for 14.4% of existing home closings, below 20.3% a year earlier. The percentage of existing home closings involving foreclosures dropped to 6.0% in September from 8.9% a year earlier while REO closings as a percentage of existing home closings sank to 8.3% from 11.3% a year earlier.