New home closings slid year-over-year in July in the Prescott, AZ market, but the decline was less than the year-over-year decline in June. New home closings moved from 45 a year earlier to 25 after the figure moved from 30 in June 2014 to 13 in June 2015.
A total of 312 new homes were sold during the 12 months that ended in July, down from 332 for the year that ended in June.
New home closings accounted for 5.1% of overall housing closings. This is down from the 10.1% of closings a year earlier. Closings of new and existing homes increased year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
In July, the average price of newly sold homes slid year-over-year to $279,969 per unit, marking a 4.7% fall from the year-earlier figure. This fall is a drop off from the 16.1% decline in June from a year earlier.
For newly sold homes, the average mortgage size saw a boost year-over-year in contrast to new home prices. In July 2015, the average mortgage size was $251,539, up 30.3% from a year earlier. Average mortgage size on new homes went from $212,598 in June 2014 to $219,561 in June 2015.
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 climbed from 97.8% in July 2014 to all of closings in July 2015. Meanwhile, attached units as a percentage of all new home closings dropped to no part of closings from 2.2% of closings.
The average unit size of newly sold homes grew 9.9% year-over-year to 2,185 square feet in July 2015. The average size of newly sold homes moved from 1,910 square feet in June 2014 to 2,010 square feet in June 2015. This hike was opposite the price drop, a pattern also seen in June 2015 when the average size of newly sold homes jumped 5.2% to 2,010 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 13.2% of existing home closings, down from 18.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.8% in July from 10.0% a year earlier while REO closings as a percentage of existing home closings sank to 7.3% from 8.8% a year earlier.