Closings of new homes declined year-over-year in September in the Orlando, FL market, but there were signals the market may be stabilizing from a percentage fall less than August 2015. There was a 21.3% drop in new home closings from a year earlier. This followed a 22.1% fall year-over-year in August.
A total of 7,467 new homes were sold during the 12 months that ended in September, down from 7,606 for the year that ended in August.
New home closings made up 10.6% of overall housing closings. This is down from the 12.5% of closings a year earlier. Following a year-over-year decline in August, closings of new and existing homes also declined year-over-year in September.
Pricing and Mortgage Trends
For newly sold homes, the average price slid 4.5% year-over-year in September to $317,350 per unit. This fall is larger than the 1.7% decline in August from a year earlier.
The average mortgage size on newly sold homes slid year-over-year in contrast to the average price of new homes. In September 2015, average mortgage size sank 3.6% from a year earlier to $255,163. Average mortgage size went from $255,444 in August 2014 to $253,856 in August 2015.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings gained from 83.2% of new closings in September 2014 to 84.7% of closings in September 2015. Meanwhile, attached units as a percentage of all new home closings fell to 15.3% of closings from 16.8% of closings.
The average unit size of newly sold homes sank 10.8% year-over-year to 2,544 square feet in September 2015. The average size of newly sold homes moved from 2,762 square feet in August 2014 to 2,433 square feet in August 2015. A fall was also seen in August 2015 when the average size of new homes sold dropped 11.9% to 2,433 square feet.
Foreclosures and real estate owned (REO) closings fell in September from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings made up 32.5% of closings, below 47.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 13.5% in September from 25.9% a year earlier while REO closings as a percentage of existing home closings dropped to 19.0% from 21.1% a year earlier.