New home closings in the Coeur d'Alene, ID market declined year-over-year in January, but the percentage decline, which was less steep than in December 2015, seemed to be signaling market improvement. Closings fell 11.4% from a year earlier to 31. This followed a 17.1% decline year-over-year in December.
A total of 548 new homes were sold during the 12 months that ended in January, down from 552 for the year that ended in December.
New home closings represented 9.8% of overall housing closings. This is down from the 13.5% of closings a year earlier. For new and existing homes, closings increased year-over-year in January after also increasing in December year-over-year.
Pricing and Mortgage Trends
In January, the average price of newly sold homes jumped year-over-year to $294,994 per unit, a 17.6% hike. This lift is an improvement over the 13.6% gain in December year-over-year.
Average mortgage size on new homes climbed year-over-year along with new home prices. The average mortgage size rose to $256,040 in January, marking a 18.5% rise compared with a year earlier. In December 2015, average mortgage size on newly sold homes saw a 14.0% bump year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes increased from 97.1% in January 2015 to all of closings in January 2016. Conversely, the share of new home closings belonging to attached units sank to no part of closings from 2.9% of closings.
The average unit size of newly sold homes gained 91.6% year-over-year to 3,868 square feet in January 2016. An increase in both the average size and price of newly sold homes was also seen in December 2015 when the average size rose 8.6% to 2,112 square feet. In December, the average size of new homes sold went from 1,944 square feet a year earlier to 2,112 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in January, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 15.0% of existing closings, lower than 22.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.0% in January from 11.1% a year earlier while REO closings as a percentage of existing home closings declined to 8.0% from 11.6% a year earlier.