In August, there was a fall year-over-year in new home closings in the Orlando, FL market, and there were signals the market may be weakening with a percentage decline steeper than July 2015. Closings fell 54.7% from a year earlier to 322. This was after the housing market saw a 22.2% decline year-over-year in July.
A total of 7,089 new homes were sold during the 12 months that ended in August, down from 7,478 for the year that ended in July.
Out of all housing closings, new home closings made up 6.2%. This is a fall 12.4% of closings a year earlier. After rising year-over-year in July, closings of new and existing homes sank year-over-year in August.
Pricing and Mortgage Trends
From August 2014 to August 2015, the average price of newly sold homes went from $316,551 to $319,006. This came after a 7.8% bump 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. Average mortgage size increased 1.7% to $259,833 in August from a year earlier. In July 2015, average mortgage size grew 6.8% 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. The share of new home closings belonging to single-family homes increased from 81.9% in August 2014 to 82.9% of closings in August 2015. Conversely, the share of new home closings belonging to attached units slid to 17.1% of closings from 18.1% of closings.
For all new homes sold, the average unit size declined 14.1% year-over-year to 2,375 square feet in August 2015. The average size of newly sold homes moved from 2,756 square feet in July 2014 to 2,684 square feet in July 2015.
Foreclosures and real estate owned (REO) closings fell in August from a year earlier, but remained a drag on the market. Combined, foreclosures plus REO closings represented 33.0% of existing home closings, below 50.6% a year earlier. The percentage of existing home closings involving foreclosures fell to 13.7% in August from 31.6% a year earlier and REO closings moved from 19.1% of existing home closings in August 2014 to 19.2% in August 2015.