In March, the Miami, FL market saw a decline year-over-year in new home closings, and there were suggestions of worsening market conditions as the percentage decline was steeper than February 2016. Closings slid 28.1% from a year earlier to 462. This came after a 17.9% fall year-over-year in February.
A total of 7,144 new homes were sold during the 12 months that ended in March, down from 7,325 for the year that ended in February.
Of the total number of closings, new home closings made up 3.7%. A year ago, 4.4% of total closings were new home closings. Following a year-over-year decline in February, closings of new and existing homes also fell year-over-year in March.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 21.1% bump year-over-year in March to $597,575 per unit. This boost is smaller than the 23.1% rise in February year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In March 2016, the average mortgage size on newly sold homes saw a 6.3% gain from a year earlier. Average mortgage size rose 14.9% in February 2016 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes jumped from 34.1% in March 2015 to 56.1% of closings in March 2016. At the same time, the share of new home closings belonging to attached units dropped to 43.9% of closings from 65.9% of closings.
The average unit size of newly sold homes climbed 42.5% year-over-year to 2,292 square feet in March 2016. The average size of newly sold homes moved from 1,885 square feet in February 2015 to 2,250 square feet in February 2016. An increase in both the average size and price of newly sold homes was also seen in February 2016 when the average size rose 19.4% to 2,250 square feet.
Foreclosures and real estate owned (REO) closings decreased in March from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, accounted for 26.2% of existing closings, lower than 35.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 11.5% in March from 16.4% a year earlier while REO closings as a percentage of existing home closings dropped to 14.7% from 18.8% a year earlier.