New home closings in the Gainesville, GA market dropped year-over-year in April, a drop following an increase in March 2016. New home closings saw a decline of 23.5% from the year earlier to 52. This followed a 8.7% jump year-over-year in March.
A total of 745 new homes were sold during the 12 months that ended in April, down from 761 for the year that ended in March.
New home closings made up 16.7% of overall housing closings. This is better than the 14.5% of closings a year earlier. Following a year-over-year increase in March, closings of new and existing homes declined year-over-year in April.
Pricing and Mortgage Trends
In April, the average per-unit price of new homes sank by 1.9% year-over-year to $267,525. This fall is a drop off from the 5.1% decline in March from a year earlier.
The average mortgage size on newly sold homes saw a fall year-over-year in contrast to new home prices. Average mortgage size fell by 3.5% from a year earlier, settling at $201,839 in April. In March 2016, average mortgage size declined 5.8% 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 grew from no part of all closings in April 2015 to 3.8% of closings in April 2016. At the same time, the share belonging to single-family homes declined to 96.2% of closings from all of closings.
There was a 29.4% gain year-over-year in the average unit size of newly sold homes to 3,406 square feet in April 2016. The average size of newly sold homes moved from 2,754 square feet in March 2015 to 2,119 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 15.0% of existing home closings, down from 21.8% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.4% in April from 7.5% a year earlier while REO closings as a percentage of existing home closings declined to 9.6% from 14.2% a year earlier.