Closings of new homes declined year-over-year in September in the Savannah, GA market, and there were hints the market may be weakening with a percentage decline steeper than August 2015. There was a 47.2% drop in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 20.3% fall year-over-year in August.
A total of 590 new homes were sold during the 12 months that ended in September, down from 624 for the year that ended in August.
Out of all housing closings, new home closings represented 6.4%. This is a fall 15.0% of closings a year earlier. For new and existing homes, closings gained year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
In September, the average per-unit price of new homes slid by 4.5% year-over-year to $221,550. This decline is larger than the 3.0% fall in August from a year earlier.
For newly sold homes, the average mortgage size dropped year-over-year in contrast to average price of new homes. In September 2015, average mortgage size fell 4.6% from a year earlier to $209,806. In August 2015, average mortgage size climbed 2.1% 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 grew from 98.6% of new closings in September 2014 to all of closings in September 2015. At the same time, the share of new home closings belonging to attached units declined to no part of closings from 1.4% of closings.
There was a 73.0% boost year-over-year in the average unit size of newly sold homes to 4,089 square feet in September 2015. The average size of newly sold homes moved from 2,275 square feet in August 2014 to 2,581 square feet in August 2015. For newly sold homes, an average size lift contrasting with an average price fall was also seen in August 2015 when the average size of newly sold homes slid 13.5% to 2,581 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 21.5% of existing closings, lower than 30.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 10.3% in September from 14.0% a year earlier while REO closings as a percentage of existing home closings sank to 11.2% from 16.5% a year earlier.