The Palm Bay, FL market saw an increase in closings of new homes in September year-over-year, and with a more robust rise than August 2015, there are suggestions the market may be strengthening. New home closings saw a boost of 18.4% from the year earlier to 90. In comparison, new home closings in the same month last year saw a 13.5% hike year-over-year in August.
A total of 1,027 new homes were sold during the 12 months that ended in September, up from 1,013 for the year that ended in August.
As a percentage of overall housing closings, new home closings represented 6.0% of overall housing closings. New home closings were 5.2% of overall closings last year. Closings of new and existing homes grew year-over-year in September following a decline in August year-over-year.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year 12.6% in September to $237,160 per unit. This lift is smaller than the 15.7% hike in August year-over-year.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. It climbed to $220,294 in September, a 12.8% lift. In August 2015, average mortgage size grew 6.3% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings jumped from 81.6% of new closings in September 2014 to 88.9% of closings in September 2015. At the same time, the share of new home closings belonging to attached units fell to 11.1% of closings from 18.4% of closings.
For all new homes sold, the average unit size rose 63.3% year-over-year to 1,556 square feet in September 2015. In August, the average size of new homes sold went from 2,825 square feet a year earlier to 1,478 square feet.
Foreclosures and real estate owned (REO) closings declined in September from a year earlier, but remained a drag on the market. Foreclosures and REO closings, taken together, represented 29.0% of existing closings, lower than 47.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 12.8% in September from 23.2% a year earlier while REO closings as a percentage of existing home closings slid to 16.2% from 23.7% a year earlier.