New home closings sank year-over-year in February in the Gainesville, GA market, a downhill move after a bump in January 2016. New home closings saw a fall of 4.8% from the year earlier to 40. In comparison, new home closings in the same month last year saw a 33.3% rise year-over-year in January.
A total of 755 new homes were sold during the 12 months that ended in February, down from 757 for the year that ended in January.
As a percentage of overall housing closings, new home closings represented 15.6%. This marks a rise from 14.0% of total closings a year earlier. Closings of new and existing homes sank year-over-year in February after also falling in January year-over-year.
Pricing and Mortgage Trends
In February, the average per-unit price of new homes declined by 8.2% year-over-year to $257,275. This fall is larger than the 5.5% decline in January from a year earlier.
For newly sold homes, the average mortgage size dropped year-over-year in contrast to average price of new homes. The average mortgage size fell to $218,997 in February, marking a 1.6% drop compared with last year. In January 2016, average mortgage size on newly sold homes saw a 1.2% fall 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. Attached unit closings increased from no part of all closings in February 2015 to 5.0% of closings in February 2016. At the same time, the share belonging to single-family homes fell to 95.0% of closings from all of closings.
There was a 68.0% bump year-over-year in the average unit size of newly sold homes to 4,678 square feet in February 2016. The average size of newly sold homes moved from 2,654 square feet in January 2015 to 2,151 square feet in January 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in February, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 18.0% of existing home closings, below 25.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.6% in February from 14.7% a year earlier while REO closings as a percentage of existing home closings climbed to 13.4% from 11.2%.