New home closings fell year-over-year in December in the Miami, FL market, and there were signs of worsening market conditions as the percentage drop was steeper than November 2015. Closings fell 38.1% from a year earlier to 395. This came on the heels of a 25.1% fall year-over-year in November.
A total of 6,238 new homes were sold during the 12 months that ended in December, down from 6,481 for the year that ended in November.
As a percentage of overall housing closings, new home closings represented 3.3%. This is a fall 4.5% of closings a year earlier. For new and existing homes, closings sank in December after also declining in November year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price rose 17.1% year-over-year in December to $663,211 per unit. This lift is better than the 5.2% surge in November year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size rose to $401,079 in December, marking a 7.9% lift compared with a year earlier. In November 2015, average mortgage size jumped 4.1% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings increased from 45.1% of new closings in December 2014 to 60.8% of closings in December 2015. Meanwhile, attached units as a percentage of all new home closings dropped to 39.2% of closings from 54.9% of closings.
For all new homes sold, the average unit size jumped 2.4% year-over-year to 2,232 square feet in December 2015. The average size of newly sold homes moved from 1,969 square feet in November 2014 to 2,449 square feet in November 2015. An increase in both the average size and price of newly sold homes was also seen in November 2015 when the average size gained 24.4% to 2,449 square feet.
Foreclosures and real estate owned (REO) closings fell in December from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings made up 27.9% of closings, below 36.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 10.5% in December from 17.0% a year earlier while REO closings as a percentage of existing home closings dropped to 17.4% from 19.7% a year earlier.