The Miami, FL market saw a drop in new home closings year-over-year in October, and the percentage drop, which was steeper than September 2015, gave signals that the market may be worsening. New home closings saw a drop of 38.4% from the year earlier to 406. This was after the housing market saw a 12.9% fall year-over-year in September.
A total of 6,621 new homes were sold during the 12 months that ended in October, down from 6,874 for the year that ended in September.
As a percentage of overall housing closings, new home closings accounted for 3.3%. This is down from the a year earlier when new home closings made up 4.5% of total closings. Closings of new and existing homes declined year-over-year in October after also falling in September year-over-year.
Pricing and Mortgage Trends
In October, the average value of new homes saw a 24.7% bump year-over-year as it grew to $671,178 per unit. This boost is an improvement over the 2.8% rise in September year-over-year.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. It grew to $394,428 in October, a 18.7% lift. Average mortgage size declined 1.5% in September 2015 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 gained from 55.5% in October 2014 to 56.9% of closings in October 2015. Conversely, the share of new home closings belonging to attached units slid to 43.1% of closings from 44.5% of closings.
There was a 5.7% gain year-over-year in the average unit size of newly sold homes to 2,322 square feet in October 2015. An increase was also seen in September 2015 when the average size of new homes sold grew 6.7% to 2,387 square feet. In September, the average size of new homes sold went from 2,238 square feet a year earlier to 2,387 square feet.
Foreclosures and real estate owned (REO) closings fell in October from a year earlier, but remained a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 30.8% of closings, below 41.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 13.2% in October from 22.0% a year earlier while REO closings as a percentage of existing home closings declined to 17.6% from 19.5% a year earlier.