In September, there was an increase in closings of new homes in the Palm Bay, FL market year-over-year, and the percentage boost was an improvement from August 2015, suggesting the market may be gaining momentum. New home closings saw a 18.4% climb from a year earlier to 90. This came on the heels of a 13.5% boost 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.
New home closings represented 6.0% of overall housing closings. New home closings were 5.2% of overall closings last year. After dropping in August from a year earlier, closings of new and existing homes climbed year-over-year in September.
Pricing and Mortgage Trends
In September, the average price of newly sold homes rose year-over-year to $237,160 per unit, a 12.6% boost. This hike is smaller than the 15.7% gain in August year-over-year.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. Average mortgage size climbed 12.8% to $220,294 in September from a year earlier. In August 2015, average mortgage size climbed 6.3% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes grew from 81.6% in September 2014 to 88.9% of closings in September 2015. Conversely, the share of new home closings belonging to attached units dropped to 11.1% of closings from 18.4% of closings.
The average unit size of newly sold homes jumped 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 burden on the market. Combined, foreclosures plus REO closings represented 29.0% of existing home closings, below 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.