Closings of new homes in the Miami, FL market fell year-over-year in May, but the percentage fall narrowed from that of April 2016, suggesting that the market may be evening out. There was a 34.2% fall in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 39.1% drop year-over-year in April.
A total of 6,696 new homes were sold during the 12 months that ended in May, down from 6,951 for the year that ended in April.
New home closings accounted for 3.9% of overall housing closings. This is a fall 5.4% of closings a year earlier. Closings of new and existing homes dropped year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes rose year-over-year 7.5% in May to $599,421 per unit. This rise is smaller than the 25.5% hike in April year-over-year.
Average mortgage size on new homes climbed year-over-year along with new home prices. In May 2016, the average mortgage size was $375,910, up 4.4% from a year earlier. Average mortgage size grew 12.0% in April 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings increased from 33.8% of new closings in May 2015 to 52.2% of closings in May 2016. Conversely, the share of new home closings belonging to attached units declined to 47.8% of closings from 66.2% of closings.
For all new homes sold, the average unit size rose 36.9% year-over-year to 2,877 square feet in May 2016. In April, the average size of new homes sold went from 2,000 square feet a year earlier to 2,812 square feet. An increase was also seen in April 2016 when the average size of new homes sold increased 40.6% to 2,812 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 22.6% of existing home closings, below 32.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 9.1% in May from 14.6% a year earlier while REO closings as a percentage of existing home closings fell to 13.5% from 17.9% a year earlier.