In November, the Seattle, WA market saw a decline year-over-year in new home closings, but there were suggestions the market may be leveling out with a percentage fall less steep as in October 2015. New home closings saw a fall of 3.6% from the year earlier to 460. This followed a 9.2% fall year-over-year in October.
A total of 7,087 new homes were sold during the 12 months that ended in November, down from 7,104 for the year that ended in October.
Out of all housing closings, new home closings represented 9.5%. New home closings were 10.0% of overall closings last year. After staying stable in October from a year earlier, closings of new and existing homes grew in November.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year 11.6% in November to $596,816 per unit. This rise is an improvement over the 10.7% bump in October year-over-year.
Average mortgage size on new homes rose year-over-year along with new home prices. Average mortgage size gained 9.4% to $457,140 in November from a year earlier. Average mortgage size jumped 10.1% in October 2015 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. The share of new home closings belonging to attached units climbed from 13.4% of closings in November 2014 to 20.2% of closings in November 2015. Meanwhile, single-family home closings as a percentage of all new home closings declined to 79.8% of closings from 86.6% of closings.
The average unit size of newly sold homes increased 1.0% year-over-year to 2,651 square feet in November 2015. In October, the average size of new homes sold went from 2,627 square feet a year earlier to 2,651 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in November, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 13.8% of existing closings, lower than 20.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.5% in November from 10.0% a year earlier while REO closings as a percentage of existing home closings slid to 8.3% from 10.0% a year earlier.