New home closings dropped year-over-year in May in the Pensacola, FL market, but the decline was less than the year-over-year decline in April. New home closings moved from 99 a year earlier to 26 after the figure moved from 96 in April 2015 to 14 in April 2016.
A total of 636 new homes were sold during the 12 months that ended in May, down from 709 for the year that ended in April.
New home closings accounted for 3.1% of overall housing closings. This is down from the 9.9% of closings a year earlier. Closings of new and existing homes slid year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
In May, the average price of newly sold homes sank 13.0% year-over-year to $184,582 per unit. This drop is a drop off from the 22.5% fall in April from a year earlier.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. It dropped 13.3% in May from a year earlier, reaching $169,498. Average mortgage size on new homes went from $205,096 in April 2015 to $162,242 in April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
There was a 19.6% drop year-over-year in the average unit size of newly sold homes to 1,635 square feet in May 2016. The average size of newly sold homes moved from 2,026 square feet in April 2015 to 1,457 square feet in April 2016. A decrease in both the average size and price of newly sold homes was also seen in April 2016 when the average size grew 28.1% to 1,457 square feet.
Foreclosures and real estate owned (REO) closings declined in May from a year earlier, but remained a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 27.3% of closings, below 37.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 11.1% in May from 15.4% a year earlier while REO closings as a percentage of existing home closings dropped to 16.2% from 22.5% a year earlier.