The Miami, FL market saw a drop in new home closings year-over-year in February, a downhill move after a gain in January 2016. There was a 24.5% drop in new home closings from a year earlier. This came on the heels of a 26.3% rise year-over-year in January.
A total of 7,149 new homes were sold during the 12 months that ended in February, down from 7,279 for the year that ended in January.
As a percentage of overall housing closings, new home closings represented 3.9% of overall housing closings. New home closings were 4.5% of overall closings last year. Following a year-over-year decline in January, closings of new and existing homes also sank year-over-year in February.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $606,723 in February, up 24.5% from last year. This rise is smaller than the 25.1% hike in January year-over-year.
For newly sold homes, the average mortgage size increased year-over-year along with new home prices. Average mortgage size grew 15.8% to $406,838 in February from a year earlier. In January 2016, average mortgage size jumped 21.5% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes rose from 36.6% in February 2015 to 52.0% of closings in February 2016. Meanwhile, attached units as a percentage of all new home closings slid to 48.0% of closings from 63.4% of closings.
There was a move in the average unit size of newly sold homes from 2,205 square feet in February 2015 to 2,220 square feet in February 2016. In January, the average size of new homes sold went from 2,479 square feet a year earlier to 2,045 square feet. In January 2016, the average size of newly sold homes sank 17.5% from the year earlier.
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, represented 29.0% of existing closings, lower than 40.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 11.4% in February from 19.4% a year earlier while REO closings as a percentage of existing home closings declined to 17.6% from 21.2% a year earlier.