Closings of new homes slid year-over-year in July in the Spokane, WA market, and the percentage drop was steeper than June 2016, suggesting the market may be worsening. Closings declined 65.7% from a year earlier to 24. This followed a 63.5% drop year-over-year in June.
A total of 524 new homes were sold during the 12 months that ended in July, down from 570 for the year that ended in June.
New home closings represented 2.5% of overall housing closings. This is a drop 7.0% of closings a year earlier. Closings of new and existing homes slid year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
The average value of newly sold homes moved to $277,359 in July 2016 from $276,863 in July 2015. This followed a 1.2% lift in June year-over-year.
The average mortgage size on newly sold homes increased year-over-year along with the average price of new homes. In July 2016, average mortgage size grew 3.5% from a year earlier to $242,373. In June 2016, average mortgage size gained 5.9% 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 increased from 92.9% of new closings in July 2015 to all of closings in July 2016. Conversely, the share of new home closings belonging to attached units sank to no part of closings from 7.1% of closings.
The average unit size of newly sold homes dropped 2.7% year-over-year to 2,013 square feet in July 2016. In June, the average size of new homes sold went from 2,176 square feet a year earlier to 1,975 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 12.6% of existing closings, lower than 16.4% a year earlier. The percentage of existing home closings involving foreclosures slid to 5.7% in July from 8.2% a year earlier while REO closings as a percentage of existing home closings declined to 7.0% from 8.2% a year earlier.