Closings of new homes in the Cape Coral, FL market slid year-over-year in July, and with a percentage fall steeper than June 2016, there were signs the market may be worsening. New home closings saw a fall of 16.9% from the year earlier to 207. This came on the heels of a 9.2% fall year-over-year in June.
A total of 3,045 new homes were sold during the 12 months that ended in July, down from 3,087 for the year that ended in June.
As a percentage of overall housing closings, new home closings made up 10.3% of overall housing closings. A year earlier, new home closings accounted for 10.0% of total closings. For new and existing homes, closings sank in July after also declining in June year-over-year.
Pricing and Mortgage Trends
The average price of new homes dropped by 3.5% year-over-year to $328,953 per unit in July. This fall is a drop off from the 3.9% drop in June from a year earlier.
In contrast to new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In July 2016, average mortgage size jumped 1.1% from a year earlier to $242,835. In June 2016, average mortgage size fell 5.7% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings increased from 29.3% of all closings in July 2015 to 35.3% of closings in July 2016. Meanwhile, single-family home closings as a percentage of all new home closings fell to 64.7% of closings from 70.7% of closings.
For all new homes sold, the average unit size fell 2.3% year-over-year to 1,990 square feet in July 2016. A decrease in both the average size and price of newly sold homes was also seen in June 2016 when the average size grew 5.6% to 2,008 square feet. In June, the average size of new homes sold went from 2,126 square feet a year earlier to 2,008 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 16.4% of existing home closings, below 25.3% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.7% in July from 10.6% a year earlier while REO closings as a percentage of existing home closings dropped to 8.6% from 14.7% a year earlier.