There was an increase in new home closings in the Portland, OR market in July year-over-year, moving upward off a drop in June 2016. There was a 13.3% jump in new home closings from a year earlier. This came on the heels of a 7.2% fall year-over-year in June.
A total of 4,693 new homes were sold during the 12 months that ended in July, up from 4,646 for the year that ended in June.
Of 4,680 total closings, 400 were of new homes. This is a lift from 6.4% of closings a year earlier. Closings of new and existing homes dropped year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
In July, the average value of new homes saw a 24.4% gain year-over-year as it grew to $471,002 per unit. This rise is higher than the 16.3% boost in June year-over-year.
The average mortgage size on newly sold homes saw a bump year-over-year along with new home prices. Average mortgage size grew 13.9% to $355,298 in July from a year earlier. In June 2016, average mortgage size on newly sold homes saw a 8.7% rise year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. Attached unit closings rose from 14.7% of all closings in July 2015 to 30.5% of closings in July 2016. Conversely, the share belonging to single-family homes declined to 69.5% of closings from 85.3% of closings.
There was a 5.9% hike year-over-year in the average unit size of newly sold homes to 2,286 square feet in July 2016. The average size of newly sold homes moved from 2,100 square feet in June 2015 to 2,162 square feet in June 2016. An increase in both the average size and price of newly sold homes was also seen in June 2016 when the average size gained 3.0% to 2,162 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 11.0% of existing home closings, down from 13.1% a year earlier. The percentage of existing home closings involving foreclosures stayed at 6.3% of closings in July from a year earlier while REO closings as a percentage of existing home closings fell to 4.7% from 6.8% a year earlier.