New home closings in the Miami, FL market dropped year-over-year in May, but the percentage fall was an improvement from April 2016, suggesting the market may be evening out. New home closings saw a 34.2% fall from a year earlier to 490. This was after the housing market saw a 39.1% fall year-over-year in April.
A total of 6,696 new homes were sold during the 12 months that ended in May, down from 6,951 for the year that ended in April.
Out of all housing closings, new home closings made up 3.9%. This is down from the a year earlier when new home closings represented 5.4% of total closings. Closings of new and existing homes fell year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year 7.5% in May to $599,421 per unit. This surge is smaller than the 25.5% gain in April year-over-year.
For newly sold homes, the average mortgage size gained year-over-year along with new home prices. It increased to $375,910 in May, a 4.4% bump. Average mortgage size gained 12.0% in April 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings grew from 33.8% of new closings in May 2015 to 52.2% of closings in May 2016. Conversely, the share of new home closings belonging to attached units fell to 47.8% of closings from 66.2% of closings.
The average unit size of newly sold homes jumped 36.9% year-over-year to 2,877 square feet in May 2016. The average size of newly sold homes moved from 2,000 square feet in April 2015 to 2,812 square feet in April 2016. An increase in both the average size and price of newly sold homes was also seen in April 2016 when the average size grew 40.6% to 2,812 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 22.6% of existing home closings, down from 32.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 9.1% in May from 14.6% a year earlier while REO closings as a percentage of existing home closings dropped to 13.5% from 17.9% a year earlier.