In the Boise City, ID market, new home closings increased year-over-year in January, and the percentage bump was sharper than December 2015, hinting that the market may be strengthening. New home closings saw a climb of 37.0% from the year earlier to 211. This followed a 32.0% hike year-over-year in December.
A total of 2,961 new homes were sold during the 12 months that ended in January, up from 2,904 for the year that ended in December.
Of 1,241 total closings, 211 were of new homes. This is an increase on a percentage basis, as new home closings were 13.9% of total closings a year ago. For new and existing homes, closings increased year-over-year in January after also increasing in December year-over-year.
Pricing and Mortgage Trends
The average per-unit value of new homes fell year-over-year to $256,480 in January, a drop of 9.4% from a year earlier. This drop compares to a 5.5% rise in December year-over-year.
The average mortgage size on newly sold homes sank year-over-year in contrast to the average price of new homes. It fell to $224,575 in January, a 7.0% drop. Average mortgage size climbed 4.5% in December 2015 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes gained from 91.6% in January 2015 to 97.2% of closings in January 2016. Meanwhile, attached units as a percentage of all new home closings fell to 2.8% of closings from 8.4% of closings.
The average unit size of newly sold homes slid 2.0% year-over-year to 2,302 square feet in January 2016. In December, the average size of new homes sold went from 2,312 square feet a year earlier to 2,240 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 14.6% of closings, below 18.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.6% in January from 7.6% a year earlier while REO closings as a percentage of existing home closings fell to 8.0% from 11.2% a year earlier.