In the Tucson, AZ market, new home closings sank year-over-year in September, and the percentage decline was steeper than August 2015, giving suggestion the market may be worsening. New home closings saw a 20.6% decline from a year earlier to 135. This came on the heels of a 19.3% decline year-over-year in August.
A total of 1,286 new homes were sold during the 12 months that ended in September, down from 1,321 for the year that ended in August.
Out of all housing closings, new home closings accounted for 8.6%. This is down from the 11.8% of closings a year earlier. Closings of new and existing homes increased year-over-year in September after also rising in August year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 1.3% gain year-over-year in September to $274,821 per unit. This bump compares to a 3.1% fall in August from a year earlier.
The average mortgage size on newly sold homes climbed year-over-year along with the average price of new homes. In September 2015, average mortgage size increased 3.5% from a year earlier to $238,415. In August 2015, average mortgage size fell 11.9% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings jumped from 0.6% of all closings in September 2014 to 4.4% of closings in September 2015. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 95.6% of closings from 99.4% of closings.
There was a 6.3% fall year-over-year in the average unit size of newly sold homes to 2,127 square feet in September 2015. In August, the average size of new homes sold went from 2,292 square feet a year earlier to 2,208 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 19.5% of existing home closings, down from 31.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 9.9% in September from 14.8% a year earlier while REO closings as a percentage of existing home closings dropped to 9.6% from 16.7% a year earlier.