In the Portland, OR market, new home closings dropped year-over-year in April, drawing a downward slope off of a rise in March 2016. There was a 10.7% fall in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 26.2% rise year-over-year in March.
A total of 4,520 new homes were sold during the 12 months that ended in April, down from 4,563 for the year that ended in March.
New home closings were 8.6% of total number of closings, same as last year. Following a year-over-year increase in March, closings of new and existing homes fell year-over-year in April.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 17.0% gain year-over-year in April to $436,290 per unit. This boost is higher than the 8.1% lift in March year-over-year.
The average mortgage size on newly sold homes saw a surge year-over-year along with new home prices. In April 2016, there was a 14.8% bump in the average mortgage size, reaching $353,752. In March 2016, average mortgage size climbed 5.2% 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 rose from 86.3% of new closings in April 2015 to 89.4% of closings in April 2016. Conversely, the share of new home closings belonging to attached units dropped to 10.6% of closings from 13.7% of closings.
There was a 4.7% surge year-over-year in the average unit size of newly sold homes to 2,288 square feet in April 2016. The average size of newly sold homes moved from 2,306 square feet in March 2015 to 2,247 square feet in March 2016.
Foreclosures and real estate owned (REO) closings increased in April from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 12.0% of existing home closings, higher than 11.8% a year earlier. The percentage of existing home closings involving foreclosures went from 4.7% in April 2015 to 5.0% in April 2016 and REO closings moved from 7.1% of existing home closings in April 2015 to 7.0% in April 2016.