There was an increase in closings of new homes in the Gainesville, GA market in July year-over-year, and with a stronger surge than June 2016, there are signals the market may be bolstering. New home closings saw a 34.6% climb from a year earlier to 70. This came on the heels of a 7.1% boost year-over-year in June.
A total of 765 new homes were sold during the 12 months that ended in July, up from 747 for the year that ended in June.
New home closings represented 17.5% of overall housing closings. This is a boost from 13.0% of closings a year earlier. After rising in June from a year earlier, closings of new and existing homes stayed steady in July.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year in July to $289,097 per unit, a rise of 4.4%. This surge is higher than the 2.6% bump in June year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 4.9% hike year-over-year to $230,523 in July. Average mortgage size jumped 12.2% in June 2016 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. The share of new home closings belonging to attached units increased from no part of closings in July 2015 to 1.4% of closings in July 2016. At the same time, the share belonging to single-family homes slid to 98.6% of closings from all of closings.
The average unit size of newly sold homes sank 26.9% year-over-year to 1,947 square feet in July 2016. The average size of newly sold homes moved from 2,764 square feet in June 2015 to 3,184 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 11.2% of existing closings, lower than 18.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 2.7% in July from 6.6% a year earlier while REO closings as a percentage of existing home closings declined to 8.5% from 11.8% a year earlier.