In the Gainesville, GA market in December, closings of new homes climbed year-over-year, but there were signs the market may be leveling out with a percentage bump shallower than November 2015. New home closings saw a climb of 10.8% from the year earlier to 72. This was after the housing market saw a 21.8% jump year-over-year in November.
A total of 746 new homes were sold during the 12 months that ended in December, up from 739 for the year that ended in November.
Out of all housing closings, new home closings accounted for 19.5%. This is a gain from 16.7% of closings a year earlier. After rising year-over-year in November, closings of new and existing homes sank year-over-year in December.
Pricing and Mortgage Trends
Average price of newly sold homes had a 7.1% decline year-over-year to $286,718 per unit in December. This fall is larger than the 6.7% decline in November from a year earlier.
Average mortgage size on new homes saw a drop year-over-year in contrast to prices of new homes. Average mortgage size sank by 11.6% from a year earlier, settling at $213,611 in December. In November 2015, average mortgage size on newly sold homes saw a 12.1% fall 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 December 2015. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes declined 34.7% year-over-year to 1,902 square feet in December 2015. A decline was also seen in November 2015 when the average size of new homes sold slid 11.9% to 2,209 square feet. In November, the average size of new homes sold went from 2,508 square feet a year earlier to 2,209 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 23.5% of existing home closings, below 30.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.7% in December from 13.5% a year earlier while REO closings as a percentage of existing home closings declined to 14.8% from 17.2% a year earlier.