In the Augusta, GA market in June, closings of new homes fell year-over-year, but there were suggestions that the market may be leveling out with a percentage drop less steep than in May 2016. New home closings saw a drop of 37.3% from the year earlier to 104. This came after a 43.3% decline year-over-year in May.
A total of 1,260 new homes were sold during the 12 months that ended in June, down from 1,322 for the year that ended in May.
New home closings accounted for 9.5% of overall housing closings. This is down from the a year earlier when new home closings represented 15.2% of total closings. After a drop in May year-over-year, new and existing home closings stayed level in June.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $252,655 in June, up 14.1% from last year. This gain is better than the 11.3% surge in May year-over-year.
For newly sold homes, the average mortgage size gained year-over-year along with new home prices. Average mortgage size grew 14.6% to $237,488 in June from a year earlier. In May 2016, average mortgage size on newly sold homes saw a 10.8% lift year-over-year 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 accounted for all of new home closings while attached unit closings have made up no part of closings.
There was a 2.9% bump year-over-year in the average unit size of newly sold homes to 2,707 square feet in June 2016. In May, the average size of new homes sold went from 2,742 square feet a year earlier to 3,543 square feet. An increase in both the average size and price of newly sold homes was also seen in May 2016 when the average size jumped 29.2% to 3,543 square feet.
Foreclosures and real estate owned (REO) closings continued to decline 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 represented 21.6% of closings, below 25.3% a year earlier. The percentage of existing home closings involving foreclosures went from 10.1% in June 2015 to 10.4% in June 2016 and REO closings as a percentage of existing home closings slid to 11.2% from 15.2% a year earlier.