In the Phoenix, AZ market, closings of new homes gained year-over-year in June, but there were signs of market leveling as the percentage lift was less than May 2016. New home closings saw a hike of 4.9% from the year earlier to 1,155. This was after the housing market saw a 11.4% boost year-over-year in May.
A total of 12,668 new homes were sold during the 12 months that ended in June, up from 12,614 for the year that ended in May.
Of 11,235 total closings, 1,155 were of new homes. This is better than the 9.2% of closings a year earlier. After rising year-over-year in May, closings of new and existing homes fell year-over-year in June.
Pricing and Mortgage Trends
The average value of newly sold homes moved to $339,559 in June 2016 from $337,345 in June 2015. This came after a 6.1% bump in May year-over-year.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. The average mortgage size rose to $275,393 in June, marking a 2.1% surge compared with a year earlier. Average mortgage size jumped 1.5% in May 2016 from a year earlier.
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 rose from 92.5% in June 2015 to 94.4% of closings in June 2016. Conversely, the share of new home closings belonging to attached units fell to 5.6% of closings from 7.5% of closings.
There was a 4.0% decline year-over-year in the average unit size of newly sold homes to 2,370 square feet in June 2016. The average size of newly sold homes moved from 2,476 square feet in May 2015 to 2,467 square feet in May 2016.
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. Out of all existing home closings, foreclosures combined with REO closings represented 11.2% of closings, below 13.4% a year earlier. The percentage of existing home closings involving foreclosures went from 5.5% in June 2015 to 4.9% in June 2016 and REO closings as a percentage of existing home closings dropped to 6.3% from 7.9% a year earlier.