In the Gainesville, FL market, new home closings increased year-over-year in May, but signs of market leveling were showing as the percentage surge was less than April 2016. New home closings saw a 33.3% rise from a year earlier to 44. In comparison, new home closings in the same month last year saw a 50.0% climb year-over-year in April.
A total of 425 new homes were sold during the 12 months that ended in May, up from 414 for the year that ended in April.
Of 459 total closings, 44 were of new homes. This is an increase on a percentage basis, as new home closings were 6.8% of total closings a year ago. For new and existing homes, closings slid in May after also declining in April year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 20.7% drop year-over-year in May to $232,110 per unit. This drop compares to a 46.2% rise in April year-over-year.
The average mortgage size on newly sold homes fell year-over-year in contrast to the average price of new homes. In May 2016, there was a 28.4% drop in the average mortgage size on new homes to $207,260. In April 2016, average mortgage size on newly sold homes saw a 27.7% boost year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have slumped. Attached unit closings jumped from 6.1% of all closings in May 2015 to 11.4% of closings in May 2016. Conversely, the share belonging to single-family homes fell to 88.6% of closings from 93.9% of closings.
The average unit size of newly sold homes slid 12.9% year-over-year to 1,724 square feet in May 2016. The average size of newly sold homes moved from 2,011 square feet in April 2015 to 2,274 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 11.3% of closings, below 29.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 3.6% in May from 12.2% a year earlier while REO closings as a percentage of existing home closings dropped to 7.7% from 17.5% a year earlier.