In the Savannah, GA market in June, new home closings dropped year-over-year, and the percentage drop, which was steeper than May 2016, gave signs that the market may be worsening. New home closings saw a fall of 46.1% from the year earlier to 62. In comparison, new home closings in the same month last year saw a 39.2% fall year-over-year in May.
A total of 923 new homes were sold during the 12 months that ended in June, down from 976 for the year that ended in May.
Out of all housing closings, new home closings represented 7.9%. This is down from the 14.2% of closings a year earlier. Following a year-over-year increase in May, closings of new and existing homes sank year-over-year in June.
Pricing and Mortgage Trends
Average value of new homes sold in June was $222,208 per unit, down 6.3% from a year earlier. This fall compares to a 5.0% surge in May year-over-year.
For newly sold homes, the average mortgage size saw a decline year-over-year in contrast to new home prices. In June 2016, average mortgage size on new homes sold was $203,003, down 8.4% from a year earlier. In May 2016, average mortgage size on newly sold homes saw a 11.7% rise year-over-year from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 93.9% of new home closings to 93.5% of closings while attached units have gone from 6.1% of closings to 6.5% of closings.
There was a 19.0% fall year-over-year in the average unit size of newly sold homes to 1,995 square feet in June 2016. The average size of newly sold homes moved from 2,461 square feet in May 2015 to 2,259 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 21.7% of closings, below 22.3% a year earlier. The percentage of existing home closings involving foreclosures went from 8.6% in June 2015 to 9.6% in June 2016 and REO closings as a percentage of existing home closings slid to 12.2% from 13.7% a year earlier.