In the Augusta, GA market, new home closings sank year-over-year in May, and there were hints the market may be worsening with a percentage fall steeper than that of April 2016. New home closings saw a fall of 50.0% from the year earlier to 75. In comparison, new home closings in the same month last year saw a 47.7% drop year-over-year in April.
A total of 1,301 new homes were sold during the 12 months that ended in May, down from 1,376 for the year that ended in April.
As a percentage of overall housing closings, new home closings represented 8.6%. This is a decline 14.0% of closings a year earlier. Closings of new and existing homes dropped year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes increased year-over-year 10.4% in May to $248,409 per unit. This boost is an improvement over the 6.5% hike in April year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. It grew 10.4% in May from a year earlier to $232,608. In April 2016, average mortgage size rose 4.3% 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. Single-family home closings jumped from 98.7% of new closings in May 2015 to all of closings in May 2016. At the same time, the share of new home closings belonging to attached units declined to no part of closings from 1.3% of closings.
The average unit size of newly sold homes increased 29.2% year-over-year to 3,543 square feet in May 2016. In April, the average size of new homes sold went from 2,730 square feet a year earlier to 2,568 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 24.7% of closings, below 32.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 11.9% in May from 13.7% a year earlier while REO closings as a percentage of existing home closings dropped to 12.8% from 18.6% a year earlier.