In the Lake Havasu City, AZ market in February, new home closings slid year-over-year, dropping after a year-over-year increase in January 2016. New home closings moved from 20 a year earlier to 16 after the figure moved from 8 in January 2015 to 10 in January 2016.
A total of 218 new homes were sold during the 12 months that ended in February, down from 222 for the year that ended in January.
As a percentage of overall housing closings, new home closings made up 4.0%. This is down from the a year earlier when new home closings made up 5.4% of total closings. Closings of new and existing homes increased year-over-year in February following a fall in January year-over-year.
Pricing and Mortgage Trends
In February, there was a 27.8% decline year-over-year in the average per-unit price of newly sold homes, settling at $198,684. This fall is larger than the 24.0% decline in January from a year earlier.
For newly sold homes, the average mortgage size sank year-over-year in contrast to average price of new homes. In February 2016, average mortgage size declined 32.4% from a year earlier to $151,184. Average mortgage size on new homes went from $218,756 in January 2015 to $170,102 in January 2016.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes gained from 85.0% in February 2015 to 93.8% of closings in February 2016. Meanwhile, attached units as a percentage of all new home closings dropped to 6.2% of closings from 15.0% of closings.
For all new homes sold, the average unit size rose 2.3% year-over-year to 1,976 square feet in February 2016. In January, the average size of new homes sold went from 1,821 square feet a year earlier to 1,601 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in February, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 17.3% of existing closings, lower than 21.9% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.9% in February from 11.1% a year earlier while REO closings as a percentage of existing home closings dropped to 9.4% from 10.8% a year earlier.