The Seattle, WA market saw a drop in new home closings year-over-year in November, but there were hints the market may be evening out from a percentage drop less than October 2015. Closings slumped 3.6% from a year earlier to 460. This came on the heels of a 9.2% fall year-over-year in October.
A total of 7,087 new homes were sold during the 12 months that ended in November, down from 7,104 for the year that ended in October.
As a percentage of overall housing closings, new home closings accounted for 9.5% of overall housing closings. A year earlier, new home closings accounted for 10.0% of total closings. New and existing home closings rose in November after a remaining level in October from a year earlier.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year in November to $596,816 per unit, a rise of 11.6%. This surge is an improvement over the 10.7% lift in October year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In November 2015, the average mortgage size was $457,140, up 9.4% from a year earlier. Average mortgage size increased 10.1% in October 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units grew from 13.4% of closings in November 2014 to 20.2% of closings in November 2015. Meanwhile, single-family home closings as a percentage of all new home closings sank to 79.8% of closings from 86.6% of closings.
The average unit size of newly sold homes jumped 1.0% year-over-year to 2,651 square feet in November 2015. In October, the average size of new homes sold went from 2,627 square feet a year earlier to 2,651 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 13.8% of existing home closings, below 20.1% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.5% in November from 10.0% a year earlier while REO closings as a percentage of existing home closings slid to 8.3% from 10.0% a year earlier.