Closings of new homes in the Anchorage, AK market slid year-over-year in September, but compared with August 2015, the percentage decline was less steep, suggesting that the market may be stabilizing. Closings declined 9.7% from a year earlier to 28. This came on the heels of a 47.3% drop year-over-year in August.
A total of 447 new homes were sold during the 12 months that ended in September, down from 450 for the year that ended in August.
Of the total number of closings, new home closings made up 3.4%. A year ago, 3.9% of total closings were new home closings. New and existing home closings climbed in September after a remaining level in August from a year earlier.
Pricing and Mortgage Trends
Average price of newly sold homes had a 11.9% fall year-over-year to $365,779 per unit in September. This drop is larger than the 10.1% decline in August from a year earlier.
Average mortgage size on new homes slid year-over-year in contrast to new home prices. Average mortgage size dropped by 14.3% from a year earlier, settling at $320,579 in September. In August 2015, average mortgage size on newly sold homes saw a 6.2% fall 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 increased from 80.6% in September 2014 to 82.1% of closings in September 2015. At the same time, the share of new home closings belonging to attached units fell to 17.9% of closings from 19.4% of closings.
The average unit size of newly sold homes climbed 28.7% year-over-year to 3,054 square feet in September 2015. For newly sold homes, an average size bump contrasting with an average price drop was also seen in August 2015 when the average size of newly sold homes slid 6.5% to 2,475 square feet. The average size of newly sold homes moved from 2,325 square feet in August 2014 to 2,475 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 8.6% of existing home closings, below 11.3% a year earlier. The percentage of existing home closings involving foreclosures dropped to 2.8% in September from 5.0% a year earlier and REO closings moved from 6.2% of existing home closings in September 2014 to 5.8% in September 2015.