New home closings in the Orlando, FL market climbed year-over-year in May, and with a stronger boost in comparison with April 2016, the market seems to be strengthening. New home closings saw a rise of 22.0% from the year earlier to 920. This came on the heels of a 15.0% climb year-over-year in April.
A total of 9,534 new homes were sold during the 12 months that ended in May, up from 9,368 for the year that ended in April.
As a percentage of overall housing closings, new home closings represented 16.4%. This is an increase on a percentage basis, as new home closings were 12.8% of total closings a year ago. Closings of new and existing homes declined year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average value of newly sold homes moved to $328,896 in May 2016 from $329,992 in May 2015. This followed a move from $332,223 per unit in April 2015 to $335,262 in April 2016.
Average mortgage size on new homes increased year-over-year in contrast to new home prices. Average mortgage size increased 1.9% to $266,511 in May from a year earlier. In April 2016, average mortgage size remained level from a year earlier at $268,043.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 78.6% of new home closings to 77.8% of closings while attached units have gone from 21.4% of closings to 22.2% of closings.
The average unit size of newly sold homes fell 9.2% year-over-year to 2,352 square feet in May 2016. The average size of newly sold homes moved from 2,564 square feet in April 2015 to 2,676 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 24.2% of existing closings, lower than 40.7% a year earlier. The percentage of existing home closings involving foreclosures sank to 9.8% in May from 18.7% a year earlier while REO closings as a percentage of existing home closings slid to 14.4% from 22.0% a year earlier.