There was an increase in closings of new homes in the Gainesville, GA market in August year-over-year, and the percentage boost was better than July 2015, suggesting the market may be strengthening. New home closings saw a 51.9% climb from a year earlier to 79. This came after a 10.6% climb year-over-year in July.
A total of 711 new homes were sold during the 12 months that ended in August, up from 684 for the year that ended in July.
Of 410 total closings, 79 were of new homes. This is an increase on a percentage basis, as new home closings were 16.1% of total closings a year ago. Following a year-over-year increase in July, closings of new and existing homes also increased year-over-year in August.
Pricing and Mortgage Trends
In August, the average per-unit price of new homes fell by 7.5% year-over-year to $293,969. This decline is a drop off from the 8.2% fall in July from a year earlier.
The average mortgage size on newly sold homes saw a rise year-over-year in contrast to new home prices. In August 2015, the average mortgage size was $238,201, a 7.3% gain from a year earlier. In July 2015, average mortgage size on newly sold homes saw a 3.5% rise year-over-year from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in August 2015. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
For all new homes sold, the average unit size dropped 32.2% year-over-year to 1,941 square feet in August 2015. The average size of newly sold homes moved from 2,632 square feet in July 2014 to 3,006 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 16.9% of existing home closings, down from 26.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.6% in August from 14.8% a year earlier while REO closings as a percentage of existing home closings sank to 10.3% from 11.8% a year earlier.