In the Cape Coral, FL market in April, new home closings dropped year-over-year, but with a percentage drop not as steep as March 2016, there are signs that the market may be evening out. There was a 28.0% fall in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 34.3% decline year-over-year in March.
A total of 2,978 new homes were sold during the 12 months that ended in April, down from 3,044 for the year that ended in March.
Of the total number of closings, new home closings made up 7.6%. A year ago, 7.3% of total closings were new home closings. For new and existing homes, closings declined in April after also declining in March year-over-year.
Pricing and Mortgage Trends
In April, the average price of newly sold homes declined 1.7% year-over-year to $394,940 per unit. This drop is a drop off from the 10.7% fall in March from a year earlier.
In April 2016, average mortgage size on new homes went from $288,746 in April 2015 to $287,597 in April 2016. Average mortgage size sank 2.3% in March 2016 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. Attached unit closings grew from 28.0% of all closings in April 2015 to 34.7% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings fell to 65.3% of closings from 72.0% of closings.
There was a 15.0% decline year-over-year in the average unit size of newly sold homes to 1,877 square feet in April 2016. A decrease in both the average size and price of newly sold homes was also seen in March 2016 when the average size jumped 8.9% to 1,983 square feet. The average size of newly sold homes moved from 2,177 square feet in March 2015 to 1,983 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 10.8% of closings, below 23.7% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.6% in April from 9.5% a year earlier while REO closings as a percentage of existing home closings dropped to 6.2% from 14.2% a year earlier.