In the Savannah, GA market, closings of new homes declined year-over-year in July, and there were signs the market may be worsening with a percentage fall steeper than that of June 2016. Closings slumped 50.0% from a year earlier to 57. This was after the housing market saw a 46.1% decline year-over-year in June.
A total of 866 new homes were sold during the 12 months that ended in July, down from 923 for the year that ended in June.
Out of all housing closings, new home closings accounted for 9.0%. This is down from the a year earlier when new home closings made up 14.8% of total closings. For new and existing homes, closings dropped in July after also declining in June year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 2.1% decline year-over-year in July to $227,146 per unit. This fall is a drop off from the 6.3% decline in June from a year earlier.
For newly sold homes, the average mortgage size saw a drop year-over-year in contrast to new home prices. In July 2016, the average mortgage size on newly sold homes saw a 2.8% drop from a year earlier. In June 2016, average mortgage size on newly sold homes saw a 8.4% decline 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 accounted for 96.5% of new home closings while attached unit closings have represented 3.5% of closings.
There was a move in the average unit size of newly sold homes from 2,384 square feet in July 2015 to 2,396 square feet in July 2016. The average size of newly sold homes moved from 2,462 square feet in June 2015 to 1,995 square feet in June 2016. In June 2016, the average size of newly sold homes declined 19.0% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 15.5% of existing home closings, down from 22.6% a year earlier. The percentage of existing home closings involving foreclosures dropped to 6.6% in July from 8.6% a year earlier while REO closings as a percentage of existing home closings fell to 8.9% from 14.1% a year earlier.