In May, there was a decline year-over-year in new home closings in the Spokane, WA market, and the market seemed to be weakening with a percentage fall steeper than in April 2016. Closings slumped 44.4% from a year earlier to 30. This came on the heels of a 31.4% drop year-over-year in April.
A total of 623 new homes were sold during the 12 months that ended in May, down from 647 for the year that ended in April.
New home closings accounted for 3.0% of overall housing closings. This is down from the a year earlier when new home closings accounted for 5.8% of total closings. Following a drop in April year-over-year, closings of new and existing homes climbed year-over-year in May.
Pricing and Mortgage Trends
In May, the average price of newly sold homes climbed 13.6% year-over-year to $280,922 per unit. This hike is better than the 7.2% rise in April year-over-year.
For newly sold homes, the average mortgage size saw a boost year-over-year along with new home prices. In May 2016, average mortgage size rose 6.9% from a year earlier to $239,586. In April 2016, average mortgage size on newly sold homes saw a 16.0% rise year-over-year from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings gained from 5.6% of all closings in May 2015 to 6.7% of closings in May 2016. Conversely, the share belonging to single-family homes declined to 93.3% of closings from 94.4% of closings.
The average unit size of newly sold homes went from 1,974 square feet in May 2015 to 1,963 square feet in May 2016. The average size of newly sold homes moved from 2,117 square feet in April 2015 to 2,075 square feet in April 2016. In April 2016, the average size of newly sold homes dropped 2.0% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 16.6% of closings, below 19.1% a year earlier. The percentage of existing home closings involving foreclosures went from 9.3% in May 2015 to 9.8% in May 2016 and REO closings as a percentage of existing home closings fell to 6.8% from 9.9% a year earlier.