New home closings climbed year-over-year in November in the Phoenix, AZ market, rising after a decline in October 2015. There was a 14.0% rise in new home closings from a year earlier. This was after the housing market saw a 1.7% drop year-over-year in October.
A total of 10,805 new homes were sold during the 12 months that ended in November, up from 10,699 for the year that ended in October.
New home closings accounted for 11.7% of overall housing closings. New home closings were 10.9% of overall closings last year. Following a year-over-year increase in October, closings of new and existing homes also climbed year-over-year in November.
Pricing and Mortgage Trends
In November, there was a 5.2% drop year-over-year in the average per-unit price of newly sold homes, settling at $328,005. This decline compares to a 3.4% rise in October year-over-year.
For newly sold homes, the average mortgage size saw a drop year-over-year in contrast to new home prices. Average mortgage size fell 2.2% to $262,864 in November from a year earlier. Average mortgage size jumped 1.1% in October 2015 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 94.3% of new home closings to 95.0% of closings while attached units have gone from 5.7% of closings to 5.0% of closings.
The average unit size of newly sold homes fell 3.3% year-over-year to 2,448 square feet in November 2015. The average size of newly sold homes moved from 2,461 square feet in October 2014 to 2,409 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in November, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 15.0% of existing home closings, below 18.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 7.1% in November from 8.5% a year earlier while REO closings as a percentage of existing home closings sank to 7.9% from 10.4% a year earlier.