In the Miami, FL market in March, closings of new homes declined year-over-year, and the percentage fall worsened from February 2016, indicating the market may be weakening. New home closings saw a drop of 28.1% from the year earlier to 462. This followed a 17.9% decline year-over-year in February.
A total of 7,144 new homes were sold during the 12 months that ended in March, down from 7,325 for the year that ended in February.
New home closings accounted for 3.7% of overall housing closings. A year ago, 4.4% of total closings were new home closings. For new and existing homes, closings fell in March after also declining in February year-over-year.
Pricing and Mortgage Trends
In March, the average price of newly sold homes gained year-over-year to $597,575 per unit, a 21.1% lift. This rise is smaller than the 23.1% boost in February year-over-year.
Average mortgage size on new homes grew year-over-year along with new home prices. In March 2016, average mortgage size rose 6.3% from a year earlier to $353,013. In February 2016, average mortgage size on newly sold homes saw a 14.9% rise year-over-year 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. The share of new home closings belonging to single-family homes gained from 34.1% in March 2015 to 56.1% of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings dropped to 43.9% of closings from 65.9% of closings.
For all new homes sold, the average unit size jumped 42.5% year-over-year to 2,292 square feet in March 2016. An increase in both the average size and price of newly sold homes was also seen in February 2016 when the average size climbed 19.4% to 2,250 square feet. The average size of newly sold homes moved from 1,885 square feet in February 2015 to 2,250 square feet in February 2016.
Foreclosures and real estate owned (REO) closings decreased in March from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings represented 26.2% of existing home closings, below 35.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 11.5% in March from 16.4% a year earlier while REO closings as a percentage of existing home closings slid to 14.7% from 18.8% a year earlier.