Closings of new homes in the Pensacola, FL market sank year-over-year in June, and with a percentage decline steeper than May 2016, there were signs the market may be worsening. New home closings saw a decline of 88.3% from the year earlier to 16. This came after a 73.7% fall year-over-year in May.
A total of 515 new homes were sold during the 12 months that ended in June, down from 636 for the year that ended in May.
Out of all housing closings, new home closings made up 1.5%. This is down from the 12.7% of closings a year earlier. Following a drop in May year-over-year, closings of new and existing homes increased year-over-year in June.
Pricing and Mortgage Trends
Average price of newly sold homes had a 18.8% decline year-over-year to $188,738 per unit in June. This fall is larger than the 13.0% drop in May from a year earlier.
For newly sold homes, the average mortgage size declined year-over-year in contrast to average price of new homes. It fell to $186,809 in June, a 13.2% decline. In May 2016, average mortgage size slid 13.3% from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in June 2016. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
There was a 9.9% surge year-over-year in the average unit size of newly sold homes to 2,268 square feet in June 2016. The average size of newly sold homes moved from 2,034 square feet in May 2015 to 1,635 square feet in May 2016.
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. Combined, foreclosures plus REO closings made up 24.4% of existing home closings, below 35.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 11.1% in June from 13.0% a year earlier while REO closings as a percentage of existing home closings declined to 13.3% from 22.4% a year earlier.