In June, the Jacksonville, FL market saw a decline year-over-year in new home closings, and the percentage drop, which was steeper than May 2016, gave signals that the market may be worsening. New home closings saw a 41.3% decline from a year earlier to 316. This came after a 5.3% fall year-over-year in May.
A total of 5,292 new homes were sold during the 12 months that ended in June, down from 5,514 for the year that ended in May.
New home closings were 13.6% of total number of closings, same as last year. Closings of new and existing homes fell year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
In June, there was a 5.8% hike year-over-year in the average price of newly sold homes, reaching $318,092 per unit. This boost follows a move from $289,400 per unit to $291,617 from May 2015 to May 2016.
In June 2016, average mortgage size on newly sold homes moved from $264,180 to $266,652 from June 2015. In May 2016, average mortgage size increased 1.2% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units climbed from 8.4% of closings in June 2015 to 13.3% of closings in June 2016. Conversely, the share belonging to single-family homes sank to 86.7% of closings from 91.6% of closings.
For all new homes sold, the average unit size declined 7.1% year-over-year to 2,364 square feet in June 2016. The average size of newly sold homes moved from 2,453 square feet in May 2015 to 2,680 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 23.9% of closings, below 40.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 13.4% in June from 21.5% a year earlier while REO closings as a percentage of existing home closings slid to 10.5% from 19.2% a year earlier.