In the Gainesville, GA market, closings of new homes slid year-over-year in May, but with a percentage drop not as steep as April 2016, there are signals that the market may be leveling out. New home closings saw a decline of 15.9% from the year earlier to 53. This was after the housing market saw a 23.5% fall year-over-year in April.
A total of 736 new homes were sold during the 12 months that ended in May, down from 746 for the year that ended in April.
New home closings represented 11.7% of overall housing closings. This is down from the 15.5% of closings a year earlier. Following a fall in April year-over-year, closings of new and existing homes grew year-over-year in May.
Pricing and Mortgage Trends
The average per-unit value of new homes declined year-over-year to $271,502 in May, a decline of 9.3% from a year earlier. This fall is larger than the 1.9% drop in April from a year earlier.
For newly sold homes, the average mortgage size saw a drop year-over-year in contrast to new home prices. The average mortgage size fell to $221,272 in May, marking a 3.1% decline compared with last year. Average mortgage size slid 3.5% in April 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 gained from no part of closings in May 2015 to 1.9% of closings in May 2016. At the same time, the share belonging to single-family homes declined to 98.1% of closings from all of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 10.0% of existing closings, lower than 27.7% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.8% in May from 12.2% a year earlier while REO closings as a percentage of existing home closings fell to 6.3% from 15.5% a year earlier.