In the Augusta, GA market in July, closings of new homes dropped year-over-year, and the market seemed to be weakening with a percentage fall steeper than in June 2016. Closings slid 53.8% from a year earlier to 80. This came after a 36.7% fall year-over-year in June.
A total of 1,168 new homes were sold during the 12 months that ended in July, down from 1,261 for the year that ended in June.
New home closings accounted for 8.2% of overall housing closings. This is down from the 15.0% of closings a year earlier. After remaining steady in June from a year earlier, closings of new and existing homes declined year-over-year in July.
Pricing and Mortgage Trends
In July, the average value of new homes saw a 15.9% rise year-over-year as it grew to $271,156 per unit. This hike is better than the 13.7% gain in June year-over-year.
The average mortgage size on newly sold homes rose year-over-year along with the average price of new homes. The average mortgage size rose to $243,291 in July, marking a 9.3% boost compared with a year earlier. Average mortgage size gained 14.2% in June 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in July 2016. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
There was a 56.5% gain year-over-year in the average unit size of newly sold homes to 4,636 square feet in July 2016. The average size of newly sold homes moved from 2,630 square feet in June 2015 to 2,707 square feet in June 2016. An increase was also seen in June 2016 when the average size of new homes sold climbed 2.9% to 2,707 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 20.6% of existing home closings, down from 27.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 9.1% in July from 13.6% a year earlier while REO closings as a percentage of existing home closings slid to 11.4% from 14.2% a year earlier.