In the Phoenix, AZ market, new home closings dropped year-over-year in January, a downhill move after a surge in December 2015. New home closings saw a decline of 7.3% from the year earlier to 664. This came on the heels of a 32.3% climb year-over-year in December.
A total of 11,295 new homes were sold during the 12 months that ended in January, down from 11,347 for the year that ended in December.
Out of all housing closings, new home closings represented 9.4%. A year earlier, new home closings represented 9.2% of total closings. Following a year-over-year increase in December, closings of new and existing homes fell year-over-year in January.
Pricing and Mortgage Trends
In January, there was a 2.2% lift year-over-year in the average price of newly sold homes, reaching $346,198 per unit. This bump compares to a 1.3% decline in December from a year earlier.
For newly sold homes, the average mortgage size saw a drop year-over-year in contrast to new home prices. It sank 2.1% in January from a year earlier, reaching $267,667. Average mortgage size declined 5.7% 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. Single-family home closings rose from 90.9% of new closings in January 2015 to 92.5% of closings in January 2016. Conversely, the share of new home closings belonging to attached units fell to 7.5% of closings from 9.1% of closings.
The average unit size of newly sold homes dropped 3.8% year-over-year to 2,437 square feet in January 2016. In December, the average size of new homes sold went from 2,493 square feet a year earlier to 2,508 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. Together, foreclosures plus REO closings represented 16.1% of existing home closings, down from 17.8% a year earlier. The percentage of existing home closings involving foreclosures went from 8.0% in January 2015 to 7.4% in January 2016 and REO closings as a percentage of existing home closings sank to 8.7% from 9.8% a year earlier.