New home closings dropped year-over-year in July in the Tucson, AZ market, but compared with June 2015, the percentage decline was less steep, suggesting that the market may be stabilizing. There was a 40.4% drop in new home closings from a year earlier. This came on the heels of a 53.0% fall year-over-year in June.
A total of 1,302 new homes were sold during the 12 months that ended in July, down from 1,361 for the year that ended in June.
As a percentage of overall housing closings, new home closings accounted for 4.5%. This is a fall 9.0% of closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes also jumped year-over-year in July.
Pricing and Mortgage Trends
The average per-unit value of new homes slid year-over-year to $251,077 in July, a decline of 8.4% from a year earlier. This decline follows a move from $269,711 per unit in June 2014 to $268,190 in June 2015.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In July 2015, the average mortgage size on newly sold homes saw a 12.0% decline from a year earlier. In June 2015, average mortgage size grew 1.1% from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 98.6% of new home closings to 97.7% of closings while attached units have gone from 1.4% of closings to 2.3% of closings.
The average unit size of newly sold homes went from 2,271 square feet in July 2014 to 2,274 square feet in July 2015. In June, the average size of new homes sold went from 2,343 square feet a year earlier to 2,341 square feet. In June 2015, the average size of newly sold homes stayed level from the year earlier.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 16.9% of closings, below 29.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 6.8% in July from 14.8% a year earlier while REO closings as a percentage of existing home closings sank to 10.1% from 15.1% a year earlier.