New home closings dropped year-over-year in April in the Savannah, GA market, and the percentage fall was steeper than March 2016, suggesting the market may be worsening. Closings dropped 50.5% from a year earlier to 46. This was after the housing market saw a 33.0% decline year-over-year in March.

A total of 1,016 new homes were sold during the 12 months that ended in April, down from 1,063 for the year that ended in March.

New home closings accounted for 7.7% of overall housing closings. This is down from the 13.0% of closings a year earlier. Following a period of little movement in March from a year earlier, closings of new and existing homes dropped year-over-year in April.

Pricing and Mortgage Trends

The average price of new homes fell 7.1% year-over-year in April to $210,934 per unit. This decline is larger than the 3.0% drop in March 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. Average mortgage size declined by 5.3% from a year earlier, settling at $203,197 in April. In March 2016, average mortgage size grew 1.4% from a year earlier.

Other Market Trends

As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased from 2.2% of closings in April 2015 to 6.5% of closings in April 2016. Conversely, the share belonging to single-family homes sank to 93.5% of closings from 97.8% of closings.

The average unit size of newly sold homes slid 43.2% year-over-year to 1,337 square feet in April 2016. The average size of newly sold homes moved from 2,338 square feet in March 2015 to 2,467 square feet in March 2016.

Foreclosures and real estate owned (REO) closings rose in April from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 23.8% of existing home closings, up from 23.1% a year earlier. The percentage of existing home closings involving foreclosures rose to 12.0% in April from 9.2% a year earlier while REO closings as a percentage of existing home closings declined to 11.8% from 13.9% a year earlier.

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