The Seattle, WA market saw an increase in closings of new homes in June year-over-year, rising after a decline in May 2016. This year's new home closings rose from last year by 4.0%, reaching 780. This came after a move from 635 in May 2015 to 633 in May 2016.
A total of 7,446 new homes were sold during the 12 months that ended in June, up from 7,416 for the year that ended in May.
New home closings, which represented 9.2% of overall closings, were relatively stable compared with a year earlier. For new and existing homes, closings climbed year-over-year in June after also increasing in May year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 9.8% boost year-over-year in June to $595,876 per unit. This gain is smaller than the 10.4% lift in May 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 June 2016, the average mortgage size on newly sold homes saw a 11.6% surge from a year earlier. In May 2016, average mortgage size grew 9.5% 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. Single-family home closings climbed from 75.1% of new closings in June 2015 to 77.2% of closings in June 2016. At the same time, the share of new home closings belonging to attached units declined to 22.8% of closings from 24.9% of closings.
For all new homes sold, the average unit size grew 14.9% year-over-year to 2,795 square feet in June 2016. An increase in both the average size and price of newly sold homes was also seen in May 2016 when the average size jumped 4.7% to 2,644 square feet. In May, the average size of new homes sold went from 2,525 square feet a year earlier to 2,644 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 11.3% of existing home closings, down from 14.2% a year earlier. The percentage of existing home closings involving foreclosures went from 5.6% in June 2015 to 5.1% in June 2016 and REO closings as a percentage of existing home closings fell to 6.2% from 8.7% a year earlier.