In June, there was a decline year-over-year in new home closings in the Tucson, AZ market, and the percentage fall worsened from May 2016, indicating the market may be weakening. New home closings saw a 5.3% fall from a year earlier to 143. This followed a 4.3% decline year-over-year in May.
A total of 1,766 new homes were sold during the 12 months that ended in June, down from 1,774 for the year that ended in May.
As a percentage of overall housing closings, new home closings accounted for 5.7%. This is down from the a year earlier when new home closings accounted for 8.1% of total closings. Closings of new and existing homes increased year-over-year in June after also rising in May year-over-year.
Pricing and Mortgage Trends
In June, there was a 3.9% decline year-over-year in the average per-unit price of newly sold homes, settling at $251,344. This fall compares to a 6.2% hike in May year-over-year.
The average mortgage size on newly sold homes saw a drop year-over-year in contrast to new home prices. In June 2016, average mortgage size slid 4.3% from a year earlier to $221,305. In May 2016, average mortgage size on newly sold homes saw a 10.4% rise year-over-year 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 grew from 2.6% of all closings in June 2015 to 7.7% of closings in June 2016. Meanwhile, single-family home closings as a percentage of all new home closings declined to 92.3% of closings from 97.4% of closings.
There was a 4.3% lift year-over-year in the average unit size of newly sold homes to 2,276 square feet in June 2016. The average size of newly sold homes moved from 2,152 square feet in May 2015 to 2,300 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 14.0% of existing home closings, down from 18.9% a year earlier. The percentage of existing home closings involving foreclosures went from 7.2% in June 2015 to 6.5% in June 2016 and REO closings as a percentage of existing home closings fell to 7.5% from 11.7% a year earlier.