In June, the Miami, FL market saw a fall year-over-year in new home closings, but the percentage fall narrowed from that of May 2016, suggesting that the market may be stabilizing. There was a 25.5% drop in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 34.1% decline year-over-year in May.
A total of 6,513 new homes were sold during the 12 months that ended in June, down from 6,697 for the year that ended in May.
As a percentage of overall housing closings, new home closings accounted for 4.0% of overall housing closings. New home closings were 4.8% of overall closings last year. Closings of new and existing homes dropped year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 1.6% boost year-over-year in June to $546,644 per unit. This bump is smaller than the 7.4% hike in May year-over-year.
The average mortgage size on newly sold homes rose year-over-year along with the average price of new homes. In June 2016, there was a 2.1% bump in the average mortgage size, reaching $381,013. Average mortgage size grew 4.4% in May 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings increased from 40.5% of new closings in June 2015 to 54.0% of closings in June 2016. At the same time, the share of new home closings belonging to attached units slid to 46.0% of closings from 59.5% of closings.
There was a 15.4% lift year-over-year in the average unit size of newly sold homes to 2,655 square feet in June 2016. In May, the average size of new homes sold went from 2,101 square feet a year earlier to 2,877 square feet. An increase was also seen in May 2016 when the average size of new homes sold rose 36.9% to 2,877 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 21.2% of closings, below 31.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.5% in June from 13.1% a year earlier while REO closings as a percentage of existing home closings sank to 12.7% from 18.1% a year earlier.