Closings of new homes in the Spokane, WA market fell year-over-year in June, and there were hints of worsening market conditions as the percentage fall was steeper than May 2016. There was a 63.5% decline in new home closings from a year earlier. This followed a 44.4% fall year-over-year in May.
A total of 570 new homes were sold during the 12 months that ended in June, down from 624 for the year that ended in May.
New home closings made up 3.2% of overall housing closings. This is down from the a year earlier when new home closings made up 8.0% of total closings. Following a year-over-year increase in May, closings of new and existing homes sank year-over-year in June.
Pricing and Mortgage Trends
Average price of newly sold homes had a 1.2% hike year-over-year to $288,962 per unit in June. This boost is smaller than the 13.6% rise in May year-over-year.
The average mortgage size on newly sold homes increased year-over-year along with the average price of new homes. Average mortgage size gained 5.9% to $266,273 in June from a year earlier. In May 2016, average mortgage size on newly sold homes saw a 6.9% lift year-over-year 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 grew from 95.3% of new closings in June 2015 to all of closings in June 2016. At the same time, the share of new home closings belonging to attached units fell to no part of closings from 4.7% of closings.
There was a 9.2% drop year-over-year in the average unit size of newly sold homes to 1,975 square feet in June 2016. In May, the average size of new homes sold went from 1,974 square feet a year earlier to 1,963 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 13.3% of existing home closings, below 17.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.9% in June from 8.6% a year earlier while REO closings as a percentage of existing home closings slid to 7.4% from 8.8% a year earlier.