Closings of new homes slid year-over-year in July in the Jacksonville, FL market, and there were signals of weakening market conditions with a percentage decline steeper than that of June 2016. New home closings saw a 37.0% fall from a year earlier to 261. In comparison, new home closings in the same month last year saw a 20.3% fall year-over-year in June.
A total of 5,278 new homes were sold during the 12 months that ended in July, down from 5,431 for the year that ended in June.
New home closings represented 12.9% of overall housing closings. This is better than the 11.4% of closings a year earlier. For new and existing homes, closings slid in July after also declining in June year-over-year.
Pricing and Mortgage Trends
In July, the average price of newly sold homes increased 2.0% year-over-year to $306,659 per unit. This surge is smaller than the 5.5% boost in June year-over-year.
Average mortgage size on new homes went from $257,197 in July 2015 to $255,434 in July 2016. In June 2016, average mortgage size on newly sold homes saw a 1.9% drop from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units jumped from 7.7% of closings in July 2015 to 13.8% of closings in July 2016. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 86.2% of closings from 92.3% of closings.
There was a 20.2% fall year-over-year in the average unit size of newly sold homes to 1,956 square feet in July 2016. This decline was opposite the price bump, a pattern also seen in June 2016 when the average size of newly sold homes sank 11.1% to 2,262 square feet. The average size of newly sold homes moved from 2,545 square feet in June 2015 to 2,262 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 23.7% of existing closings, lower than 40.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 14.3% in July from 20.1% a year earlier while REO closings as a percentage of existing home closings dropped to 9.4% from 20.5% a year earlier.