In the Prescott, AZ market, closings of new homes slid year-over-year in April, swinging downward off a year-over-year rise in March 2016. There was a 35.8% drop in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 9.3% hike year-over-year in March.
A total of 544 new homes were sold during the 12 months that ended in April, down from 563 for the year that ended in March.
As a percentage of overall housing closings, new home closings accounted for 8.7%. This is down from the 10.2% of closings a year earlier. Closings of new and existing homes declined year-over-year in April after remaning steady in March year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes rose year-over-year 26.9% in April to $375,037 per unit. This hike is better than the 10.2% surge in March year-over-year.
There was a boost year-over-year in the average mortgage size on new homes along with new home prices. In April 2016, average mortgage size gained 48.8% from a year earlier to $302,188. In March 2016, average mortgage size slid 6.1% 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 climbed from 94.3% in April 2015 to 97.1% of closings in April 2016. Conversely, the share of new home closings belonging to attached units slid to 2.9% of closings from 5.7% of closings.
The average unit size of newly sold homes rose 1.6% year-over-year to 1,926 square feet in April 2016. In March, the average size of new homes sold went from 1,925 square feet a year earlier to 1,934 square feet.
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. Foreclosures and REO closings, taken together, represented 8.6% of existing closings, lower than 11.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 3.1% in April from 4.1% a year earlier while REO closings as a percentage of existing home closings fell to 5.6% from 7.7% a year earlier.