In the Anchorage, AK market in March, new home closings fell year-over-year, but there were signals the market may be stabilizing with a percentage fall less steep as in February 2016. Closings slumped 37.5% from a year earlier to 25. This followed a 44.7% fall year-over-year in February.
A total of 375 new homes were sold during the 12 months that ended in March, down from 390 for the year that ended in February.
New home closings represented 3.9% of overall housing closings. This is a decline 6.3% of closings a year earlier. After dropping in February from a year earlier, closings of new and existing homes gained year-over-year in March.
Pricing and Mortgage Trends
The average value for new homes sold in March 2016 was $377,821, a move from $379,973 a year earlier. This was on the heels of a 7.1% drop in February from a year earlier.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In March 2016, average mortgage size declined 4.0% from a year earlier to $323,672. In February 2016, average mortgage size fell 8.8% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units jumped from 12.5% of closings in March 2015 to 20.0% of closings in March 2016. Conversely, the share belonging to single-family homes dropped to 80.0% of closings from 87.5% of closings.
For all new homes sold, the average unit size gained 69.0% year-over-year to 3,964 square feet in March 2016. The average size of newly sold homes moved from 1,905 square feet in February 2015 to 5,465 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in March, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 11.7% of existing home closings, below 14.7% a year earlier. The percentage of existing home closings involving foreclosures went from 6.6% in March 2015 to 5.8% in March 2016 and REO closings as a percentage of existing home closings declined to 5.8% from 8.1% a year earlier.