In the Cape Coral, FL market in February, new home closings sank year-over-year, drawing a downward slope off of a rise in January 2016. There was a 9.4% decline in new home closings from a year earlier. This followed a 13.3% jump year-over-year in January.
A total of 3,074 new homes were sold during the 12 months that ended in February, down from 3,095 for the year that ended in January.
New home closings made up 10.3% of overall housing closings. A year ago, new home closings accounted for 10.1%. Closings of new and existing homes slid year-over-year in February after also falling in January year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $380,152 per unit in February, up 2.7%from a year earlier. This surge is smaller than the 16.2% lift in January year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. The average mortgage size sank to $260,228 in February, marking a 3.6% fall compared with last year. Average mortgage size grew 4.1% in January 2016 from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 68.6% of new home closings to 67.8% of closings while attached units have gone from 31.4% of closings to 32.2% of closings.
For all new homes sold, the average unit size climbed 5.3% year-over-year to 2,221 square feet in February 2016. In January, the average size of new homes sold went from 2,208 square feet a year earlier to 2,228 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in February, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 14.1% of existing home closings, down from 30.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 5.5% in February from 13.3% a year earlier while REO closings as a percentage of existing home closings sank to 8.6% from 17.2% a year earlier.