The Miami, FL market saw a drop in new home closings year-over-year in October, and the percentage drop, which was steeper than September 2015, gave hints that the market may be worsening. Closings slumped 38.4% from a year earlier to 406. This came on the heels of a 12.9% drop year-over-year in September.
A total of 6,621 new homes were sold during the 12 months that ended in October, down from 6,874 for the year that ended in September.
Out of all housing closings, new home closings made up 3.3%. This is down from the a year earlier when new home closings represented 4.5% of total closings. For new and existing homes, closings fell in October after also declining in September year-over-year.
Pricing and Mortgage Trends
In October, the average price of newly sold homes climbed year-over-year to $671,178 per unit, a 24.7% surge. This bump is better than the 2.8% gain in September year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In October 2015, the average mortgage size was $394,428, up 18.7% from a year earlier. Average mortgage size declined 1.5% in September 2015 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings jumped from 55.5% of new closings in October 2014 to 56.9% of closings in October 2015. Meanwhile, attached units as a percentage of all new home closings sank to 43.1% of closings from 44.5% of closings.
For all new homes sold, the average unit size rose 5.7% year-over-year to 2,322 square feet in October 2015. The average size of newly sold homes moved from 2,238 square feet in September 2014 to 2,387 square feet in September 2015. An increase was also seen in September 2015 when the average size of new homes sold grew 6.7% to 2,387 square feet.
Foreclosures and real estate owned (REO) closings declined in October from a year earlier, but remained a burden on the market. Together, foreclosures plus REO closings made up 30.8% of existing home closings, down from 41.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 13.2% in October from 22.0% a year earlier while REO closings as a percentage of existing home closings slid to 17.6% from 19.5% a year earlier.