New home closings in the Miami, FL market dropped year-over-year in August, moving downward after a lift in July 2015. New home closings saw a 15.7% decline from a year earlier to 488. This was after the housing market saw a 8.6% boost year-over-year in July.

A total of 6,920 new homes were sold during the 12 months that ended in August, down from 7,011 for the year that ended in July.

Of the total number of closings, new home closings made up 3.9%. A year ago, new home closings represented 4.4%. Following a year-over-year increase in July, closings of new and existing homes fell year-over-year in August.

Pricing and Mortgage Trends

In August, the average price of newly sold homes dropped 30.4% year-over-year to $617,433 per unit. This drop is larger than the 4.8% fall in July from a year earlier.

For newly sold homes, the average mortgage size sank year-over-year in contrast to average price of new homes. In August 2015, average mortgage size on new homes sold was $375,818, down 3.0% from a year earlier. In July 2015, average mortgage size on newly sold homes saw a 2.8% drop from a year earlier.

Other Market Trends

Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings climbed from 48.0% of new closings in August 2014 to 56.6% of closings in August 2015. Conversely, the share of new home closings belonging to attached units sank to 43.4% of closings from 52.0% of closings.

The average unit size of newly sold homes dropped 5.7% year-over-year to 2,190 square feet in August 2015. In July, the average size of new homes sold went from 2,401 square feet a year earlier to 2,137 square feet. A decrease in both the average size and price of newly sold homes was also seen in July 2015 when the average size grew 11.0% to 2,137 square feet.

Foreclosures and real estate owned (REO) closings decreased in August from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings made up 31.3% of closings, below 38.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 13.0% in August from 19.0% a year earlier while REO closings as a percentage of existing home closings declined to 18.4% from 19.7% a year earlier.

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