In September, there was a decline year-over-year in new home closings in the Orlando, FL market, but there were signs of market improvement with a percentage decline less steep than in August 2015. Closings slumped 21.3% from a year earlier to 515. This followed a 22.1% drop year-over-year in August.
A total of 7,467 new homes were sold during the 12 months that ended in September, down from 7,606 for the year that ended in August.
New home closings accounted for 10.6% of overall housing closings. This is down from the 12.5% of closings a year earlier. Closings of new and existing homes dropped year-over-year in September after also falling in August year-over-year.
Pricing and Mortgage Trends
The average price of new homes declined by 4.5% year-over-year to $317,350 per unit in September. This drop is larger than the 1.7% fall in August from a year earlier.
Average mortgage size on new homes dropped year-over-year in contrast to new home prices. Average mortgage size slid by 3.6% from a year earlier, settling at $255,163 in September. Average mortgage size went from $255,444 in August 2014 to $253,856 in August 2015.
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. The share of new home closings belonging to single-family homes gained from 83.2% in September 2014 to 84.7% of closings in September 2015. Meanwhile, attached units as a percentage of all new home closings fell to 15.3% of closings from 16.8% of closings.
The average unit size of newly sold homes sank 10.8% year-over-year to 2,544 square feet in September 2015. In August, the average size of new homes sold went from 2,762 square feet a year earlier to 2,433 square feet. A decline was also seen in August 2015 when the average size of new homes sold dropped 11.9% to 2,433 square feet.
Foreclosures and real estate owned (REO) closings declined in September from a year earlier, but remained a drag on the market. Combined, foreclosures plus REO closings accounted for 32.5% of existing home closings, below 47.0% a year earlier. The percentage of existing home closings involving foreclosures slid to 13.5% in September from 25.9% a year earlier while REO closings as a percentage of existing home closings fell to 19.0% from 21.1% a year earlier.