In the Pensacola, FL market in February, closings of new homes sank year-over-year, and the percentage fall was steeper than January 2016, giving suggestion the market may be worsening. There was a 79.5% drop in new home closings from a year earlier. This followed a 71.2% drop year-over-year in January.
A total of 877 new homes were sold during the 12 months that ended in February, down from 943 for the year that ended in January.
New home closings accounted for 2.5% of overall housing closings. This is down from the 10.7% of closings a year earlier. Following a year-over-year decline in January, closings of new and existing homes also dropped year-over-year in February.
Pricing and Mortgage Trends
In February, the average price of newly sold homes sank 16.2% year-over-year to $183,773 per unit. This drop is larger than the 9.0% fall in January from a year earlier.
The average mortgage size on newly sold homes dropped year-over-year in contrast to the average price of new homes. In February 2016, there was a 9.3% decline in the average mortgage size on new homes to $183,342. Average mortgage size went from $206,780 in January 2015 to $208,650 in January 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in February 2016. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes remained steady year-over-year at 2,146 square feet in February 2016. In January, the average size of new homes sold went from 2,212 square feet a year earlier to 2,247 square feet.
Foreclosures and real estate owned (REO) closings declined in February from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings made up 39.4% of existing home closings, down from 48.4% a year earlier. The percentage of existing home closings involving foreclosures slid to 19.5% in February from 20.9% a year earlier while REO closings as a percentage of existing home closings sank to 19.9% from 27.5% a year earlier.