In June, there was a decline year-over-year in new home closings in the Palm Bay, FL market, and the percentage drop was more severe than May 2016, indicating the market may be worsening. New home closings saw a 26.6% drop from a year earlier to 80. This was after the housing market saw a 12.3% decline year-over-year in May.
A total of 1,086 new homes were sold during the 12 months that ended in June, down from 1,115 for the year that ended in May.
As a percentage of overall housing closings, new home closings made up 4.8%. This is a decline 6.1% of closings a year earlier. After remaining steady in May from a year earlier, closings of new and existing homes declined year-over-year in June.
Pricing and Mortgage Trends
For newly sold homes, the average price moved from $264,905 in June 2015 to $263,925 in June 2016. This was on the heels of a 19.4% gain in May year-over-year.
The average mortgage size on newly sold homes saw a surge year-over-year in contrast to new home prices. Average mortgage size gained 7.0% to $235,968 in June from a year earlier. Average mortgage size jumped 18.1% in May 2016 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. The share of new home closings belonging to single-family homes rose from 97.2% in June 2015 to 98.8% of closings in June 2016. Conversely, the share of new home closings belonging to attached units fell to 1.2% of closings from 2.8% of closings.
There was a 11.6% bump year-over-year in the average unit size of newly sold homes to 2,457 square feet in June 2016. In May, the average size of new homes sold went from 2,116 square feet a year earlier to 2,565 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 20.9% of existing closings, lower than 31.7% a year earlier. The percentage of existing home closings involving foreclosures sank to 9.7% in June from 14.4% a year earlier while REO closings as a percentage of existing home closings fell to 11.1% from 17.2% a year earlier.