In the Augusta, GA market, new home closings fell year-over-year in May, and the percentage drop was steeper than April 2016, giving suggestion the market may be worsening. There was a 50.0% fall in new home closings from a year earlier. This came after a 47.7% decline year-over-year in April.
A total of 1,301 new homes were sold during the 12 months that ended in May, down from 1,376 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 8.6%. This is a fall 14.0% of closings a year earlier. Following a year-over-year decline in April, closings of new and existing homes also slid year-over-year in May.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes gained year-over-year to $248,409 in May, up 10.4% from last year. This boost is an improvement over the 6.5% lift in April 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 May 2016, there was a 10.4% gain in the average mortgage size, reaching $232,608. In April 2016, average mortgage size jumped 4.3% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes grew from 98.7% in May 2015 to all of closings in May 2016. At the same time, the share of new home closings belonging to attached units dropped to no part of closings from 1.3% of closings.
The average unit size of newly sold homes rose 29.2% year-over-year to 3,543 square feet in May 2016. The average size of newly sold homes moved from 2,730 square feet in April 2015 to 2,568 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 accounted for 24.7% of closings, below 32.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 11.9% in May from 13.7% a year earlier while REO closings as a percentage of existing home closings dropped to 12.8% from 18.6% a year earlier.