New home closings in the Seattle, WA market sank year-over-year in May, but the percentage drop was not as steep as April 2016, suggesting market improvement. From a year ago to May 2016, new home closings moved from 635 to 630. This compares with a 18.8% drop in April from the year earlier.
A total of 7,389 new homes were sold during the 12 months that ended in May, down from 7,394 for the year that ended in April.
New home closings represented 8.6% of overall housing closings. As a part of the whole, new home closings were 8.9% a year earlier. After dropping in April from a year earlier, closings of new and existing homes gained year-over-year in May.
Pricing and Mortgage Trends
In May, the average value of new homes saw a 10.5% rise year-over-year as it grew to $590,799 per unit. This bump is better than the 9.2% boost in April year-over-year.
There was a lift year-over-year in the average mortgage size on new homes along with new home prices. In May 2016, the average mortgage size on newly sold homes saw a 9.6% surge from a year earlier. In April 2016, average mortgage size on newly sold homes saw a 6.3% surge year-over-year 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 80.8% of new home closings to 81.3% of closings while attached units have gone from 19.2% of closings to 18.7% of closings.
For all new homes sold, the average unit size climbed 3.0% year-over-year to 2,648 square feet in May 2016. The average size of newly sold homes moved from 2,591 square feet in April 2015 to 2,522 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 12.3% of closings, below 15.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.8% in May from 7.2% a year earlier while REO closings as a percentage of existing home closings slid to 6.5% from 8.7% a year earlier.