Closings of new homes sank year-over-year in April in the Savannah, GA market, and the percentage drop was steeper than March 2016, suggesting the market may be worsening. There was a 50.5% decline in new home closings from a year earlier. This came on the heels of a 33.0% fall year-over-year in March.
A total of 1,016 new homes were sold during the 12 months that ended in April, down from 1,063 for the year that ended in March.
As a percentage of overall housing closings, new home closings made up 7.7%. This is down from the a year earlier when new home closings made up 13.0% of total closings. Following a period of little movement in March from a year earlier, closings of new and existing homes slid year-over-year in April.
Pricing and Mortgage Trends
The average price of new homes declined 7.1% year-over-year in April to $210,934 per unit. This fall is larger than the 3.0% decline in March from a year earlier.
The average mortgage size on newly sold homes saw a decline year-over-year in contrast to new home prices. In April 2016, average mortgage size on new homes sold was $203,197, down 5.3% from a year earlier. In March 2016, average mortgage size increased 1.4% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have dipped. Attached unit closings gained from 2.2% of all closings in April 2015 to 6.5% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings declined to 93.5% of closings from 97.8% of closings.
For all new homes sold, the average unit size sank 43.2% year-over-year to 1,337 square feet in April 2016. In March, the average size of new homes sold went from 2,338 square feet a year earlier to 2,467 square feet.
Foreclosures and real estate owned (REO) closings increased in April from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 23.8% of existing home closings, higher than 23.1% a year earlier. The percentage of existing home closings involving foreclosures rose to 12.0% in April from 9.2% a year earlier while REO closings as a percentage of existing home closings slid to 11.8% from 13.9% a year earlier.