Closings of new homes fell year-over-year in April in the Prescott, AZ market, a drop following an increase in March 2016. Closings fell 35.8% from a year earlier to 34. This came on the heels of a 9.3% jump 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 dropped year-over-year in April after remaning steady in March year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price rose 26.9% year-over-year in April to $375,037 per unit. This surge is higher than the 10.2% boost in March year-over-year.
There was a lift year-over-year in the average mortgage size on new homes along with new home prices. In April 2016, average mortgage size increased 48.8% from a year earlier to $302,188. In March 2016, average mortgage size on newly sold homes saw a 6.1% fall 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 jumped 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 sank to 2.9% of closings from 5.7% of closings.
For all new homes sold, the average unit size gained 1.6% year-over-year to 1,926 square feet in April 2016. The average size of newly sold homes moved from 1,925 square feet in March 2015 to 1,934 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 8.6% of existing closings, lower than 11.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.1% in April from 4.1% a year earlier while REO closings as a percentage of existing home closings slid to 5.6% from 7.7% a year earlier.