In the Miami, FL market, new home closings declined year-over-year in April, and the market seemed to be weakening with a percentage fall steeper than in March 2016. New home closings saw a 38.7% decline from a year earlier to 438. This came after a 26.3% decline year-over-year in March.
A total of 6,891 new homes were sold during the 12 months that ended in April, down from 7,168 for the year that ended in March.
As a percentage of overall housing closings, new home closings accounted for 3.6%. This is down from the a year earlier when new home closings accounted for 4.9% of total closings. Closings of new and existing homes sank year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
In April, there was a 25.9% gain year-over-year in the average price of newly sold homes, reaching $658,246 per unit. This boost is an improvement over the 23.2% bump in March year-over-year.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. In April 2016, average mortgage size increased 12.5% from a year earlier to $382,425. In March 2016, average mortgage size on newly sold homes saw a 6.1% lift year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings jumped from 34.0% of new closings in April 2015 to 55.9% of closings in April 2016. At the same time, the share of new home closings belonging to attached units fell to 44.1% of closings from 66.0% of closings.
The average unit size of newly sold homes grew 31.1% year-over-year to 2,535 square feet in April 2016. An increase was also seen in March 2016 when the average size of new homes sold gained 43.7% to 2,311 square feet. In March, the average size of new homes sold went from 1,608 square feet a year earlier to 2,311 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 23.5% of existing home closings, down from 33.3% a year earlier. The percentage of existing home closings involving foreclosures declined to 8.9% in April from 14.6% a year earlier while REO closings as a percentage of existing home closings sank to 14.6% from 18.6% a year earlier.