New home closings in the Cape Coral, FL market dropped year-over-year in April, but compared with March 2016, the percentage decline was less steep, suggesting that the market may be leveling out. New home closings saw a decline of 28.0% from the year earlier to 170. This followed a 34.3% decline year-over-year in March.
A total of 2,978 new homes were sold during the 12 months that ended in April, down from 3,044 for the year that ended in March.
Of the total number of closings, new home closings made up 7.6%. New home closings were 7.3% of overall closings last year. Closings of new and existing homes dropped year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes declined 1.7% year-over-year in April to $394,940 per unit. This fall is a drop off from the 10.7% decline in March from a year earlier.
For newly sold homes, average mortgage size moved from $288,746 in April 2015 to $287,597 in April 2016. Average mortgage size declined 2.3% in March 2016 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings climbed from 28.0% of all closings in April 2015 to 34.7% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings sank to 65.3% of closings from 72.0% of closings.
There was a 15.0% decline year-over-year in the average unit size of newly sold homes to 1,877 square feet in April 2016. In March, the average size of new homes sold went from 2,177 square feet a year earlier to 1,983 square feet. A decrease in both the average size and price of newly sold homes was also seen in March 2016 when the average size increased 8.9% to 1,983 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 10.8% of existing home closings, down from 23.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.6% in April from 9.5% a year earlier while REO closings as a percentage of existing home closings slid to 6.2% from 14.2% a year earlier.