In the Punta Gorda, FL market in May, new home closings fell year-over-year, but the percentage fall was an improvement from April 2016, suggesting the market may be stabilizing. There was a 31.4% fall in new home closings from a year earlier. This followed a 42.3% drop year-over-year in April.
A total of 272 new homes were sold during the 12 months that ended in May, down from 283 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 3.4%. This is down from the 4.7% of closings a year earlier. For new and existing homes, closings fell in May after also declining in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $213,217 per unit in May, up 6.0%from a year earlier. This hike follows a move from $208,281 per unit in April 2015 to $207,966 in April 2016.
For newly sold homes, the average mortgage size grew year-over-year along with new home prices. Average mortgage size gained 17.1% to $178,911 in May from a year earlier. Average mortgage size grew 2.9% in April 2016 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 increased from 88.6% in May 2015 to 95.8% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings dropped to 4.2% of closings from 11.4% of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 16.9% of existing home closings, below 28.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.8% in May from 11.8% a year earlier while REO closings as a percentage of existing home closings dropped to 10.1% from 16.8% a year earlier.