In the Olympia, WA market in April, closings of new homes increased year-over-year, and with a stronger boost in comparison with March 2016, the market seems to be strengthening. Closings climbed 34.0% from a year earlier to 63. This came on the heels of a 20.4% jump year-over-year in March.
A total of 697 new homes were sold during the 12 months that ended in April, up from 681 for the year that ended in March.
As a percentage of overall housing closings, new home closings accounted for 12.9%. This is an increase on a percentage basis, as new home closings were 10.9% of total closings a year ago. For new and existing homes, closings gained year-over-year in April after also increasing in March year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 4.3% drop year-over-year in April to $306,211 per unit. This fall compares to a 1.2% gain in March year-over-year.
The average mortgage size on newly sold homes jumped year-over-year in contrast to the average price of new homes. In April 2016, the average mortgage size was $288,225, up 4.4% from a year earlier. Average mortgage size went from $289,051 in March 2015 to $287,258 in March 2016.
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. Attached unit closings grew from no part of all closings in April 2015 to 9.5% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings declined to 90.5% of closings from all of closings.
There was a 3.5% decline year-over-year in the average unit size of newly sold homes to 2,145 square feet in April 2016. The average size of newly sold homes moved from 2,218 square feet in March 2015 to 2,214 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 21.7% of existing home closings, down from 31.9% a year earlier. The percentage of existing home closings involving foreclosures sank to 8.7% in April from 11.1% a year earlier while REO closings as a percentage of existing home closings slid to 13.0% from 20.7% a year earlier.