The Portland, OR market saw an increase in closings of new homes in February year-over-year, rebounding from a year-over-year fall in January 2016. New home closings saw a climb of 9.5% from the year earlier to 346. This was after the housing market saw a 3.1% decline year-over-year in January.
A total of 4,340 new homes were sold during the 12 months that ended in February, up from 4,310 for the year that ended in January.
Of the total number of closings, new home closings made up 10.5%. New home closings were 10.2% of overall closings last year. Closings of new and existing homes gained year-over-year in February after also rising in January year-over-year.
Pricing and Mortgage Trends
The average value of newly sold homes moved to $388,843 in February 2016 from $385,233 in February 2015. This was on the heels of a 6.5% boost in January year-over-year.
The average mortgage size on newly sold homes jumped year-over-year along with the average price of new homes. The average mortgage size saw a 1.5% bump year-over-year to $323,205 in February. In January 2016, average mortgage size climbed 6.3% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units increased from 12.3% of closings in February 2015 to 20.8% of closings in February 2016. Conversely, the share belonging to single-family homes slid to 79.2% of closings from 87.7% of closings.
For all new homes sold, the average unit size declined 7.4% year-over-year to 2,116 square feet in February 2016. In January, the average size of new homes sold went from 2,353 square feet a year earlier to 2,233 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. Out of all existing home closings, foreclosures combined with REO closings accounted for 18.2% of closings, below 19.2% a year earlier. The percentage of existing home closings involving foreclosures went from 8.8% in February 2015 to 8.7% in February 2016 and REO closings moved from 10.4% of existing home closings in February 2015 to 9.6% in February 2016.