New home closings in the Prescott, AZ market jumped year-over-year in June, on an upswing after a drop in May 2016. Closings climbed 19.5% from a year earlier to 49. This followed a 12.5% decline year-over-year in May.
A total of 548 new homes were sold during the 12 months that ended in June, up from 540 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 9.0%. This is better than the 7.8% of closings a year earlier. Closings of new and existing homes rose year-over-year in June following a drop in May year-over-year.
Pricing and Mortgage Trends
In June, the average price of newly sold homes gained year-over-year to $348,680 per unit, a 24.3% lift. This rise is higher than the 11.6% lift in May year-over-year.
For newly sold homes, the average mortgage size climbed year-over-year along with new home prices. The average mortgage size saw a 12.1% rise year-over-year to $261,956 in June. Average mortgage size climbed 44.2% in May 2016 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have fallen. Attached unit closings increased from 4.9% of all closings in June 2015 to 6.1% of closings in June 2016. Conversely, the share belonging to single-family homes declined to 93.9% of closings from 95.1% of closings.
There was a 23.8% surge year-over-year in the average unit size of newly sold homes to 2,352 square feet in June 2016. In May, the average size of new homes sold went from 1,945 square feet a year earlier to 1,963 square feet.
Foreclosures and real estate owned (REO) closings rose in June from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 10.3% of existing home closings, up from 10.0% a year earlier. The percentage of existing home closings involving foreclosures went from 4.1% in June 2015 to 3.4% in June 2016 and REO closings as a percentage of existing home closings rose to 6.9% from 5.8%.