Closings of new homes in the Gainesville, FL market slid year-over-year in July, and the market seemed to be worsening in light of the percentage drop steeper than June 2015. New home closings saw a 27.9% fall from a year earlier to 31. This followed a 5.1% drop year-over-year in June.
A total of 312 new homes were sold during the 12 months that ended in July, down from 324 for the year that ended in June.
As a percentage of overall housing closings, new home closings accounted for 6.2%. This is down from the a year earlier when new home closings accounted for 9.8% of total closings. Following a year-over-year increase in June, closings of new and existing homes also increased year-over-year in July.
Pricing and Mortgage Trends
In July, the average value of new homes saw a 2.0% gain year-over-year as it grew to $248,129 per unit. This boost is smaller than the 7.4% lift in June year-over-year.
There was a surge year-over-year in the average mortgage size on new homes along with new home prices. Average mortgage size climbed 5.7% to $219,571 in July from a year earlier. In June 2015, average mortgage size on newly sold homes saw a 16.9% hike year-over-year 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. The share of new home closings belonging to attached units gained from 4.7% of closings in July 2014 to 12.9% of closings in July 2015. Meanwhile, single-family home closings as a percentage of all new home closings fell to 87.1% of closings from 95.3% of closings.
The average unit size of newly sold homes increased 28.3% year-over-year to 2,026 square feet in July 2015. An increase in both the average size and price of newly sold homes was also seen in June 2015 when the average size jumped more than twofold to 3,476 square feet. In June, the average size of new homes sold went from 1,651 square feet a year earlier to 3,476 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 22.9% of existing closings, lower than 35.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.2% in July from 20.3% a year earlier while REO closings as a percentage of existing home closings slid to 12.7% from 14.9% a year earlier.