Closings of new homes in the Savannah, GA market slid year-over-year in August, but the market seemed to be hinting at improvement with a percentage decline less steep than in July 2015. There was a 18.2% drop in new home closings from a year earlier. This came on the heels of a 21.9% drop year-over-year in July.
A total of 623 new homes were sold during the 12 months that ended in August, down from 637 for the year that ended in July.
New home closings made up 9.6% of overall housing closings. This is a fall 14.2% of closings a year earlier. For new and existing homes, closings gained year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 3.5% fall year-over-year to $212,136 per unit in August. This decline compares to a 6.2% gain in July year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year in contrast to new home prices. The average mortgage size rose to $205,656 in August, marking a 1.5% lift compared with a year earlier. Average mortgage size went from $205,396 in July 2014 to $203,367 in July 2015.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes gained from 96.1% in August 2014 to 98.4% of closings in August 2015. Meanwhile, attached units as a percentage of all new home closings slid to 1.6% of closings from 3.9% of closings.
For all new homes sold, the average unit size grew 14.9% year-over-year to 2,581 square feet in August 2015. In July, the average size of new homes sold went from 2,799 square feet a year earlier to 2,406 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 17.9% of closings, below 23.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 7.4% in August from 10.1% a year earlier while REO closings as a percentage of existing home closings sank to 10.5% from 13.8% a year earlier.