In February, the Palm Bay, FL market saw a fall year-over-year in new home closings, and with a percentage fall steeper than January 2016, there were hints the market may be worsening. There was a 31.4% decline in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 19.4% decline year-over-year in January.
A total of 1,034 new homes were sold during the 12 months that ended in February, down from 1,067 for the year that ended in January.
As a percentage of overall housing closings, new home closings accounted for 5.8%. This is down from the 7.3% of closings a year earlier. For new and existing homes, closings sank in February after also declining in January year-over-year.
Pricing and Mortgage Trends
In February, there was a 8.5% gain year-over-year in the average price of newly sold homes, reaching $267,474 per unit. This boost is smaller than the 14.7% surge in January year-over-year.
The average mortgage size on newly sold homes climbed year-over-year along with the average price of new homes. The average mortgage size rose to $232,963 in February, marking a 17.8% bump compared with a year earlier. In January 2016, average mortgage size on newly sold homes saw a 22.7% lift 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 gained from 10.5% of all closings in February 2015 to 27.8% of closings in February 2016. At the same time, the share belonging to single-family homes fell to 72.2% of closings from 89.5% of closings.
Foreclosures and real estate owned (REO) closings fell in February from a year earlier, but remained a drag on the market. Foreclosures and REO closings, taken together, made up 29.5% of existing closings, lower than 41.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 15.0% in February from 18.3% a year earlier while REO closings as a percentage of existing home closings slid to 14.5% from 22.8% a year earlier.