In the Seattle, WA market, new home closings declined year-over-year in March, curving down after an increase in February 2016. Closings dropped 9.7% from a year earlier to 641. This followed a 9.7% boost year-over-year in February.
A total of 7,518 new homes were sold during the 12 months that ended in March, down from 7,587 for the year that ended in February.
New home closings accounted for 10.1% of overall housing closings. This is down from the 11.4% of closings a year earlier. Following a year-over-year increase in February, closings of new and existing homes also jumped year-over-year in March.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year 14.2% in March to $594,995 per unit. This rise is higher than the 10.3% surge in February year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In March 2016, the average mortgage size was $459,392, a 10.4% surge from a year earlier. Average mortgage size gained 10.4% in February 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 82.0% of new home closings to 81.1% of closings while attached units have gone from 18.0% of closings to 18.9% of closings.
The average unit size of newly sold homes grew 4.4% year-over-year to 2,702 square feet in March 2016. In February, the average size of new homes sold went from 2,654 square feet a year earlier to 2,559 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 14.9% of existing home closings, down from 20.4% a year earlier. The percentage of existing home closings involving foreclosures dropped to 6.7% in March from 8.2% a year earlier while REO closings as a percentage of existing home closings fell to 8.2% from 12.2% a year earlier.