In the Punta Gorda, FL market, new home closings slid year-over-year in June, and with a percentage decline steeper than May 2016, there were signals the market may be worsening. There was a 33.3% decline in new home closings from a year earlier. This was after the housing market saw a 11.4% decline year-over-year in May.
A total of 284 new homes were sold during the 12 months that ended in June, down from 296 for the year that ended in May.
Out of all housing closings, new home closings represented 3.6%. This is down from the 5.0% of closings a year earlier. For new and existing homes, closings dropped in June after also declining in May year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 23.0% hike year-over-year in June to $215,564 per unit. This rise is an improvement over the 5.2% lift in May year-over-year.
Average mortgage size on new homes jumped year-over-year along with new home prices. In June 2016, there was a 17.4% rise in the average mortgage size, reaching $173,864. Average mortgage size grew 13.0% in May 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in June 2016. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
For all new homes sold, the average unit size jumped 64.1% year-over-year to 2,980 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 16.4% of existing closings, lower than 25.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.2% in June from 12.6% a year earlier while REO closings as a percentage of existing home closings sank to 9.2% from 13.0% a year earlier.