The Spokane, WA market saw a drop in new home closings year-over-year in June, and with a percentage fall steeper than May 2016, there were signals the market may be worsening. New home closings saw a decline of 63.5% from the year earlier to 31. This came on the heels of a 44.4% decline year-over-year in May.
A total of 570 new homes were sold during the 12 months that ended in June, down from 624 for the year that ended in May.
Out of all housing closings, new home closings represented 3.2%. This is down from the a year earlier when new home closings made up 8.0% of total closings. Following a year-over-year rise in May, closings of new and existing homes declined year-over-year in June.
Pricing and Mortgage Trends
In June, there was a 1.2% surge year-over-year in the average price of newly sold homes, reaching $288,962 per unit. This bump is smaller than the 13.6% lift in May year-over-year.
Average mortgage size on new homes grew year-over-year along with new home prices. It gained to $266,273 in June, a 5.9% bump. In May 2016, average mortgage size climbed 6.9% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes jumped from 95.3% in June 2015 to all of closings in June 2016. At the same time, the share of new home closings belonging to attached units fell to no part of closings from 4.7% of closings.
There was a 9.2% decline year-over-year in the average unit size of newly sold homes to 1,975 square feet in June 2016. The average size of newly sold homes moved from 1,974 square feet in May 2015 to 1,963 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 13.3% of existing home closings, down from 17.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.9% in June from 8.6% a year earlier while REO closings as a percentage of existing home closings sank to 7.4% from 8.8% a year earlier.