Closings of new homes declined year-over-year in September in the Orlando, FL market, but the fall in percentage terms was an improvement from August 2015, suggesting that the market may be leveling out. New home closings saw a 21.3% drop from a year earlier to 515. This was after the housing market saw a 22.1% fall year-over-year in August.
A total of 7,467 new homes were sold during the 12 months that ended in September, down from 7,606 for the year that ended in August.
As a percentage of overall housing closings, new home closings accounted for 10.6%. This is a drop 12.5% of closings a year earlier. For new and existing homes, closings slid in September after also declining in August year-over-year.
Pricing and Mortgage Trends
In September, the average per-unit price of new homes declined by 4.5% year-over-year to $317,350. This drop is larger than the 1.7% fall in August from a year earlier.
Average mortgage size on new homes saw a drop year-over-year in contrast to prices of new homes. Average mortgage size dropped 3.6% to $255,163 in September from a year earlier. Average mortgage size went from $255,444 in August 2014 to $253,856 in August 2015.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings grew from 83.2% of new closings in September 2014 to 84.7% of closings in September 2015. Meanwhile, attached units as a percentage of all new home closings declined to 15.3% of closings from 16.8% of closings.
The average unit size of newly sold homes sank 10.8% year-over-year to 2,544 square feet in September 2015. A decrease in both the average size and price of newly sold homes was also seen in August 2015 when the average size jumped 11.9% to 2,433 square feet. In August, the average size of new homes sold went from 2,762 square feet a year earlier to 2,433 square feet.
Foreclosures and real estate owned (REO) closings fell in September from a year earlier, but stayed a drag on the market. Together, foreclosures plus REO closings made up 32.5% of existing home closings, down from 47.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 13.5% in September from 25.9% a year earlier while REO closings as a percentage of existing home closings slid to 19.0% from 21.1% a year earlier.