In the Savannah, GA market in June, new home closings sank year-over-year, and there were signals of worsening market conditions as the percentage drop was steeper than May 2016. New home closings saw a drop of 46.1% from the year earlier to 62. This came on the heels of a 39.2% decline 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 accounted for 7.9%. This is down from the a year earlier when new home closings represented 14.2% of total closings. Following a year-over-year increase in May, closings of new and existing homes slid year-over-year in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes slid year-over-year to $222,208 per unit, marking a 6.3% drop from the year-earlier figure. This drop compares to a 5.0% bump in May year-over-year.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. Average mortgage size fell 8.4% to $203,003 in June from a year earlier. Average mortgage size rose 11.7% in May 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to 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% decline year-over-year in the average unit size of newly sold homes to 1,995 square feet in June 2016. In May, the average size of new homes sold went from 2,461 square feet a year earlier to 2,259 square feet.
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. Together, foreclosures plus REO closings made up 21.7% of existing home closings, down from 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 fell to 12.2% from 13.7% a year earlier.