New Home Prices Rise in Phoenix According to Newest Figures, Sales Decline
Posted on: May 06, 2013 07:28:32 AM
New home closings in the Phoenix, AZ market sank year-over-year in February, but with a percentage decline not as steep as January 2013, there are signals that the market may be leveling out. New home closings dropped by 57.6% in February 2013 from a year earlier, after closings saw a 58.6% drop in January from the year earlier.
A total of 9,741 new homes were sold during the 12 months that ended in February, down from 10,250 for the year that ended in January.
New home closings represented 4.1% of overall housing closings, less than the 8.2% of closings a year earlier. Following a year-over-year decline in January, closings of new and existing homes also declined year-over-year in February.
Pricing and Mortgage Trends
The average price of newly sold homes rose year-over-year 11.9% in February to $277,606 per unit. This gain is better than the 8.4% rise in January year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In February 2013, average mortgage size jumped 20.0% from a year earlier to $254,335. Average mortgage size increased 9.8% in January 2013 from a year earlier. For new home closings, the percentage of the sale price that was being financed rose 6.2 percentage points year-over-year to 91.6% in February 2013.
New Home Prices Rise in Phoenix According to Newest Figures, Sales Decline
Posted on: May 06, 2013 07:28:32 AM
New home closings in the Phoenix, AZ market sank year-over-year in February, but with a percentage decline not as steep as January 2013, there are signals that the market may be leveling out. New home closings dropped by 57.6% in February 2013 from a year earlier, after closings saw a 58.6% drop in January from the year earlier.
A total of 9,741 new homes were sold during the 12 months that ended in February, down from 10,250 for the year that ended in January.
New home closings represented 4.1% of overall housing closings, less than the 8.2% of closings a year earlier. Following a year-over-year decline in January, closings of new and existing homes also declined year-over-year in February.
Pricing and Mortgage Trends
The average price of newly sold homes rose year-over-year 11.9% in February to $277,606 per unit. This gain is better than the 8.4% rise in January year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In February 2013, average mortgage size jumped 20.0% from a year earlier to $254,335. Average mortgage size increased 9.8% in January 2013 from a year earlier. For new home closings, the percentage of the sale price that was being financed rose 6.2 percentage points year-over-year to 91.6% in February 2013.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. The share of new home closings belonging to attached units climbed from 6.9% of closings in February 2012 to 9.6% of closings in February 2013. Meanwhile, single-family home closings as a percentage of all new home closings slid to 90.4% of closings from 93.1% of closings.
There was a 3.2% decline year-over-year in the average unit size of newly sold homes to 2,267 square feet in February 2013. This decline was opposite the price hike, a pattern also seen in January 2013 when the average size of newly sold homes declined 1.9% to 2,381 square feet.
Foreclosures and real estate owned (REO) closings fell in February from a year earlier, but stayed a drag on the market. Foreclosures and REO closings, taken together, made up 31.3% of existing closings, lower than 51.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 12.3% in February from 24.3% a year earlier while REO closings as a percentage of existing home closings fell to 19.0% from 27.0% a year earlier.
Please refer to the ABOUT THIS MSA tab to learn more about geographic coverage and data availability in the Phoenix, AZ area.
Source: Housing Intelligence