The Miami, FL market saw an increase in closings of new homes in January year-over-year, rising after a drop in December 2015. There was a 25.6% boost in new home closings from a year earlier. This came on the heels of a 6.3% fall year-over-year in December.
A total of 7,208 new homes were sold during the 12 months that ended in January, up from 7,113 for the year that ended in December.
Of 9,833 total closings, 466 were of new homes. This marks a rise from 3.3% of total closings a year earlier. For new and existing homes, closings fell in January after also declining in December year-over-year.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in January to $695,371 per unit, a rise of 26.9%. This surge is smaller than the 42.7% lift in December year-over-year.
For newly sold homes, the average mortgage size gained year-over-year along with new home prices. In January 2016, average mortgage size increased 21.8% from a year earlier to $414,075. In December 2015, average mortgage size jumped 17.5% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units grew from 43.4% of closings in January 2015 to 61.4% of closings in January 2016. Meanwhile, single-family home closings as a percentage of all new home closings slid to 38.6% of closings from 56.6% of closings.
The average unit size of newly sold homes sank 17.7% year-over-year to 2,038 square feet in January 2016. In December, the average size of new homes sold went from 2,162 square feet a year earlier to 2,245 square feet.
Foreclosures and real estate owned (REO) closings fell in January from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 33.1% of closings, below 45.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 16.7% in January from 25.2% a year earlier while REO closings as a percentage of existing home closings slid to 16.4% from 20.4% a year earlier.