There was a rise in closings of new homes in the Naples, FL market in December year-over-year, but with a rise less sharp than November 2015, there were suggestions the market may be evening out. Closings rose 23.0% from a year earlier to 299. This came after a 32.4% climb year-over-year in November.
A total of 2,351 new homes were sold during the 12 months that ended in December, up from 2,295 for the year that ended in November.
Out of all housing closings, new home closings accounted for 21.5%. This is a gain from 17.7% of closings a year earlier. Closings of new and existing homes rose in December after staying steady in November from a year earlier.
Pricing and Mortgage Trends
The average price of newly sold homes gained year-over-year 2.7% in December to $609,873 per unit. This surge is smaller than the 3.8% rise in November year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In December 2015, the average mortgage size was $387,754, up 8.2% from a year earlier. In November 2015, average mortgage size grew 11.6% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased from 21.0% of closings in December 2014 to 30.8% of closings in December 2015. Meanwhile, single-family home closings as a percentage of all new home closings fell to 69.2% of closings from 79.0% of closings.
For all new homes sold, the average unit size declined 6.8% year-over-year to 2,181 square feet in December 2015. This decline was opposite the price gain, a pattern also seen in November 2015 when the average size of newly sold homes sank 8.1% to 2,090 square feet. The average size of newly sold homes moved from 2,275 square feet in November 2014 to 2,090 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in December, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 16.2% of existing home closings, below 17.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.8% in December from 8.0% a year earlier and REO closings moved from 9.9% of existing home closings in December 2014 to 9.4% in December 2015.