In the Anchorage, AK market, closings of new homes declined year-over-year in September, but compared with August 2015, the percentage drop was less steep, suggesting that the market may be leveling out. There was a 9.7% decline in new home closings from a year earlier. This came on the heels of a 47.3% fall year-over-year in August.
A total of 447 new homes were sold during the 12 months that ended in September, down from 450 for the year that ended in August.
As a percentage of overall housing closings, new home closings made up 3.4% of overall housing closings. New home closings were 3.9% of overall closings last year. New and existing home closings gained in September after a remaining level in August from a year earlier.
Pricing and Mortgage Trends
In September, the average per-unit price of new homes slid by 11.9% year-over-year to $365,779. This drop is larger than the 10.1% decline in August from a year earlier.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In September 2015, average mortgage size slid 14.3% from a year earlier to $320,579. In August 2015, average mortgage size declined 6.2% 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 rose from 80.6% of new closings in September 2014 to 82.1% of closings in September 2015. Conversely, the share of new home closings belonging to attached units fell to 17.9% of closings from 19.4% of closings.
There was a 28.7% boost year-over-year in the average unit size of newly sold homes to 3,054 square feet in September 2015. The average size of newly sold homes moved from 2,325 square feet in August 2014 to 2,475 square feet in August 2015. This bump was opposite the price decline, a pattern also seen in August 2015 when the average size of newly sold homes rose 6.5% to 2,475 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 8.6% of closings, below 11.3% a year earlier. The percentage of existing home closings involving foreclosures declined to 2.8% in September from 5.0% a year earlier and REO closings moved from 6.2% of existing home closings in September 2014 to 5.8% in September 2015.