In May, the Palm Bay, FL market saw a drop year-over-year in new home closings, sliding down after a lift in April 2016. There was a 14.0% decline in new home closings from a year earlier. This followed a 19.2% hike year-over-year in April.
A total of 1,114 new homes were sold during the 12 months that ended in May, down from 1,129 for the year that ended in April.
Of the total number of closings, new home closings made up 6.0%. They represented 6.9% of closings a year earlier. Closings of new and existing homes stayed level after declining in April year-over-year.
Pricing and Mortgage Trends
In May, there was a 19.2% bump year-over-year in the average price of newly sold homes, reaching $291,833 per unit. This hike compares to a 3.8% decline in April from a year earlier.
Average mortgage size on new homes jumped year-over-year along with new home prices. In May 2016, there was a 17.6% rise in the average mortgage size, reaching $249,441. Average mortgage size rose 1.2% in April 2016 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes grew from 86.0% in May 2015 to 90.2% of closings in May 2016. At the same time, the share of new home closings belonging to attached units fell to 9.8% of closings from 14.0% of closings.
The average unit size of newly sold homes rose 21.2% year-over-year to 2,565 square feet in May 2016. The average size of newly sold homes moved from 2,168 square feet in April 2015 to 2,734 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 19.5% of existing home closings, below 31.2% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.0% in May from 11.4% a year earlier while REO closings as a percentage of existing home closings declined to 12.5% from 19.7% a year earlier.