In April, there was an increase in closings of new homes in the Honolulu, HI market year-over-year, and with a stronger hike than March 2016, there are suggestions the market may be bolstering. New home closings saw a 78.8% boost from a year earlier to 93. This was after the housing market saw a 56.8% hike year-over-year in March.
A total of 701 new homes were sold during the 12 months that ended in April, up from 660 for the year that ended in March.
Out of all housing closings, new home closings represented 8.5%. This marks a rise from 4.8% of total closings a year earlier. For new and existing homes, closings increased year-over-year in April after also increasing in March year-over-year.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year in April to $895,734 per unit, a rise of 39.1%. This boost is smaller than the 69.0% gain in March year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. Average mortgage size fell 5.8% to $535,023 in April from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 12.7% hike year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings climbed from 55.8% of new closings in April 2015 to 97.8% of closings in April 2016. At the same time, the share of new home closings belonging to attached units slid to 2.2% of closings from 44.2% of closings.
The average unit size of newly sold homes rose 7.9% year-over-year to 1,648 square feet in April 2016. The average size of newly sold homes moved from 1,405 square feet in March 2015 to 1,652 square feet in March 2016. An increase in both the average size and price of newly sold homes was also seen in March 2016 when the average size increased 17.6% to 1,652 square feet.
Foreclosures and real estate owned (REO) closings rose in April from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 11.2% of existing home closings, up from 8.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 3.2% in April from 4.8% a year earlier while REO closings as a percentage of existing home closings gained to 7.9% from 3.7%.