New home closings sank year-over-year in August in the Gainesville, FL market, but the drop in percentage terms was not as steep as July 2015, signaling that the market may be stabilizing. New home closings saw a decline of 5.7% from the year earlier to 33. In comparison, new home closings in the same month last year saw a 23.3% decline year-over-year in July.

A total of 315 new homes were sold during the 12 months that ended in August, down from 317 for the year that ended in July.

As a percentage of overall housing closings, new home closings accounted for 8.0%. This is down from the 9.0% of closings a year earlier. For new and existing homes, closings climbed year-over-year in August after also increasing in July year-over-year.

Pricing and Mortgage Trends

In August, the average per-unit price of new homes slid by 10.4% year-over-year to $230,166. This decline compares to a 1.2% hike in July year-over-year.

For newly sold homes, the average mortgage size saw a decline year-over-year in contrast to new home prices. In August 2015, average mortgage size sank 6.6% from a year earlier to $228,306. Average mortgage size increased 6.5% in July 2015 from a year earlier.

Other Market Trends

As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. The share of new home closings belonging to attached units rose from 2.9% of closings in August 2014 to 9.1% of closings in August 2015. Conversely, the share belonging to single-family homes slid to 90.9% of closings from 97.1% of closings.

Foreclosures and real estate owned (REO) closings fell in August from a year earlier, but remained a burden on the market. Together, foreclosures plus REO closings represented 28.6% of existing home closings, down from 33.1% a year earlier. The percentage of existing home closings involving foreclosures went from 13.3% in August 2014 to 13.9% in August 2015 and REO closings as a percentage of existing home closings dropped to 14.7% from 19.8% a year earlier.

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