New home closings in the Tucson, AZ market slid year-over-year in May, and there were signals the market may be worsening with a percentage fall steeper than that of April 2016. Closings dropped 11.6% from a year earlier to 122. This followed a 4.2% fall year-over-year in April.
A total of 1,764 new homes were sold during the 12 months that ended in May, down from 1,780 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 5.0%. This is down from the 7.9% of closings a year earlier. Closings of new and existing homes jumped year-over-year in May after also rising in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes went from $259,971 in May 2015 to $258,651 in May 2016. This followed a 2.2% drop in April from a year earlier.
The average mortgage size on newly sold homes rose year-over-year in contrast to the average price of new homes. It increased 4.7% in May from a year earlier to $233,169. Average mortgage size sank 2.1% in April 2016 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 climbed from 4.3% of all closings in May 2015 to 6.6% of closings in May 2016. At the same time, the share belonging to single-family homes sank to 93.4% of closings from 95.7% of closings.
There was a 3.8% gain year-over-year in the average unit size of newly sold homes to 2,228 square feet in May 2016. The average size of newly sold homes moved from 2,168 square feet in April 2015 to 2,104 square feet in April 2016.
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 12.4% of closings, below 19.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 5.5% in May from 9.2% a year earlier while REO closings as a percentage of existing home closings declined to 6.9% from 10.4% a year earlier.