The Cape Coral, FL market saw an increase in closings of new homes in May year-over-year, moving up after a decline in April 2016. New home closings saw a 1.2% rise from a year earlier to 248. This was after the housing market saw a 23.3% decline year-over-year in April.
A total of 2,992 new homes were sold during the 12 months that ended in May, up from 2,989 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 10.6%. This is better than the 8.9% of closings a year earlier. Following a year-over-year decline in April, closings of new and existing homes also fell year-over-year in May.
Pricing and Mortgage Trends
For newly sold homes, the average price dropped 6.8% year-over-year in May to $355,857 per unit. This fall is larger than the 4.7% drop in April from a year earlier.
For newly sold homes, the average mortgage size saw a fall year-over-year in contrast to new home prices. It declined 9.9% in May from a year earlier, reaching $237,017. In April 2016, average mortgage size on newly sold homes saw a 1.9% drop from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings climbed from 66.1% of new closings in May 2015 to 71.0% of closings in May 2016. Conversely, the share of new home closings belonging to attached units declined to 29.0% of closings from 33.9% of closings.
There was a 8.0% decline year-over-year in the average unit size of newly sold homes to 1,996 square feet in May 2016. A decrease in both the average size and price of newly sold homes was also seen in April 2016 when the average size increased 15.0% to 1,877 square feet. In April, the average size of new homes sold went from 2,207 square feet a year earlier to 1,877 square feet.
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 11.9% of existing closings, lower than 21.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.0% in May from 8.7% a year earlier while REO closings as a percentage of existing home closings sank to 6.9% from 12.8% a year earlier.