In August, there was an increase in closings of new homes in the Naples, FL market year-over-year, but signs of market leveling were showing as the percentage lift was less than July 2015. New home closings saw a boost of 5.9% from the year earlier to 180. This came on the heels of a 7.5% climb year-over-year in July.
A total of 2,033 new homes were sold during the 12 months that ended in August, up from 2,023 for the year that ended in July.
Out of all housing closings, new home closings accounted for 14.7%. A year ago, 13.8% of total closings were new home closings. Following a period of little movement in July from a year earlier, closings of new and existing homes dropped year-over-year in August.
Pricing and Mortgage Trends
In August, the average price of newly sold homes jumped year-over-year to $650,721 per unit, a 37.1% hike. This hike is better than the 5.9% rise in July year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In August 2015, the average mortgage size was $348,296, a 3.0% surge from a year earlier. Average mortgage size grew 12.2% in July 2015 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. Single-family home closings gained from 69.4% of new closings in August 2014 to 78.9% of closings in August 2015. Conversely, the share of new home closings belonging to attached units fell to 21.1% of closings from 30.6% of closings.
There was a move in the average unit size of newly sold homes from 2,327 square feet in August 2014 to 2,350 square feet in August 2015. The average size of newly sold homes moved from 2,272 square feet in July 2014 to 2,662 square feet in July 2015. In July 2015, the average size of newly sold homes increased 17.2% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 15.7% of existing home closings, below 23.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 6.8% in August from 9.9% a year earlier while REO closings as a percentage of existing home closings slid to 8.9% from 13.8% a year earlier.