In the Cape Coral, FL market, closings of new homes sank year-over-year in March, and the percentage decline worsened from February 2016, indicating the market may be weakening. Closings dropped 34.7% from a year earlier to 179. This was after the housing market saw a 6.7% fall year-over-year in February.
A total of 3,041 new homes were sold during the 12 months that ended in March, down from 3,136 for the year that ended in February.
As a percentage of overall housing closings, new home closings made up 8.3%. This is a fall 9.5% of closings a year earlier. For new and existing homes, closings fell in March after also declining in February year-over-year.
Pricing and Mortgage Trends
In March, the average price of newly sold homes declined 11.1% year-over-year to $352,186 per unit. This fall is larger than the 4.7% decline in February from a year earlier.
For newly sold homes, the average mortgage size sank year-over-year in contrast to average price of new homes. In March 2016, average mortgage size on new homes sold was $249,765, down 2.9% from a year earlier. Average mortgage size sank 5.3% in February 2016 from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 67.5% of new home closings to 68.2% of closings while attached units have gone from 32.5% of closings to 31.8% of closings.
For all new homes sold, the average unit size dropped 9.5% year-over-year to 1,971 square feet in March 2016. The average size of newly sold homes moved from 2,123 square feet in February 2015 to 2,009 square feet in February 2016. A fall was also seen in February 2016 when the average size of new homes sold slid 5.4% to 2,009 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in March, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 12.1% of existing home closings, down from 23.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.6% in March from 10.7% a year earlier while REO closings as a percentage of existing home closings sank to 7.6% from 12.5% a year earlier.