In January, there was a drop year-over-year in new home closings in the Orlando, FL market, moving downward after a surge in December 2015. Closings fell 1.2% from a year earlier to 407. In comparison, new home closings in the same month last year saw a 5.9% boost year-over-year in December.
A total of 8,303 new homes were sold during the 12 months that ended in January, down from 8,308 for the year that ended in December.
New home closings accounted for 10.2% of overall housing closings. This is better than the 8.7% of closings a year earlier. Following a year-over-year decline in December, closings of new and existing homes also fell year-over-year in January.
Pricing and Mortgage Trends
The average price of new homes was $326,838 per unit in January, up 1.1%from a year earlier. This surge is smaller than the 3.0% hike in December year-over-year.
Average mortgage size on new homes saw a decline year-over-year in contrast to prices of new homes. In January 2016, average mortgage size declined 2.8% from a year earlier to $255,885. In December 2015, average mortgage size gained 2.2% 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 77.2% of new closings in January 2015 to 83.0% of closings in January 2016. Meanwhile, attached units as a percentage of all new home closings slid to 17.0% of closings from 22.8% of closings.
The average unit size of newly sold homes jumped 3.4% year-over-year to 2,597 square feet in January 2016. In December, the average size of new homes sold went from 2,655 square feet a year earlier to 2,428 square feet.
Foreclosures and real estate owned (REO) closings fell in January from a year earlier, but remained a burden on the market. Together, foreclosures plus REO closings represented 38.8% of existing home closings, down from 57.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 21.9% in January from 29.6% a year earlier while REO closings as a percentage of existing home closings slid to 16.9% from 27.4% a year earlier.