Closings of new homes dropped year-over-year in April in the Portland, OR market, moving south after a boost in March 2016. Closings slid 10.7% from a year earlier to 358. This was after the housing market saw a 26.2% climb year-over-year in March.
A total of 4,520 new homes were sold during the 12 months that ended in April, down from 4,563 for the year that ended in March.
Closings of new homes represented 8.6% of total closings, consistent with last year's figures. Following a year-over-year rise in March, closings of new and existing homes fell year-over-year in April.
Pricing and Mortgage Trends
In April, there was a 17.0% gain year-over-year in the average price of newly sold homes, reaching $436,290 per unit. This hike is better than the 8.1% surge in March year-over-year.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. In April 2016, the average mortgage size was $353,752, up 14.8% from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 5.2% 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. The share of new home closings belonging to single-family homes grew from 86.3% in April 2015 to 89.4% of closings in April 2016. Meanwhile, attached units as a percentage of all new home closings declined to 10.6% of closings from 13.7% of closings.
The average unit size of newly sold homes gained 4.7% year-over-year to 2,288 square feet in April 2016. In March, the average size of new homes sold went from 2,306 square feet a year earlier to 2,247 square feet.
Foreclosures and real estate owned (REO) closings rose in April from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 12.0% of existing home closings, up from 11.8% a year earlier. The percentage of existing home closings involving foreclosures went from 4.7% in April 2015 to 5.0% in April 2016 and REO closings moved from 7.1% of existing home closings in April 2015 to 7.0% in April 2016.