In the Naples, FL market, new home closings declined year-over-year in June, a drop following an increase in May 2016. Closings fell 19.0% from a year earlier to 196. This came on the heels of a 23.8% jump year-over-year in May.
A total of 2,706 new homes were sold during the 12 months that ended in June, down from 2,752 for the year that ended in May.
Of the total number of closings, new home closings made up 15.5%. A year earlier, new home closings made up 14.9% of total closings. Closings of new and existing homes fell year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
In June, the average price of newly sold homes increased 13.8% year-over-year to $571,506 per unit. This hike compares to a period of stability in May from a year earlier.
The average mortgage size on new homes moved north year-over-year along with new home prices. Average mortgage size jumped 8.3% to $344,028 in June from a year earlier. In May 2016, average mortgage size rose 11.5% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units jumped from 21.9% of closings in June 2015 to 29.1% of closings in June 2016. At the same time, the share belonging to single-family homes fell to 70.9% of closings from 78.1% of closings.
The average unit size of newly sold homes dropped 9.9% year-over-year to 1,902 square feet in June 2016. The average size of newly sold homes moved from 2,239 square feet in May 2015 to 2,277 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 11.0% of existing home closings, down from 14.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 4.6% in June from 8.0% a year earlier and REO closings moved from 6.9% of existing home closings in June 2015 to 6.4% in June 2016.