New home closings dropped year-over-year in July in the Orlando, FL market, and there were signals the market may be worsening with a percentage drop steeper than that of June 2015. New home closings saw a decline of 24.8% from the year earlier to 474. This was after the housing market saw a 1.4% decline year-over-year in June.
A total of 7,357 new homes were sold during the 12 months that ended in July, down from 7,513 for the year that ended in June.
As a percentage of overall housing closings, new home closings made up 10.0%. This is a fall 11.2% of closings a year earlier. Closings of new and existing homes slid year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
In July, there was a 8.2% boost year-over-year in the average price of newly sold homes, reaching $326,752 per unit. This rise is higher than the 5.8% gain in June year-over-year.
The average mortgage size on newly sold homes saw a hike year-over-year along with new home prices. It grew to $261,876 in July, a 7.8% bump. Average mortgage size increased 1.8% in June 2015 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 80.3% in July 2014 to 82.5% of closings in July 2015. At the same time, the share of new home closings belonging to attached units sank to 17.5% of closings from 19.7% of closings.
The average unit size of newly sold homes dropped 9.1% year-over-year to 2,505 square feet in July 2015. In June, the average size of new homes sold went from 2,597 square feet a year earlier to 2,642 square feet.
Foreclosures and real estate owned (REO) closings decreased in July from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 34.1% of closings, below 45.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 15.8% in July from 25.8% a year earlier while REO closings as a percentage of existing home closings slid to 18.4% from 20.0% a year earlier.