In the Punta Gorda, FL market in July, new home closings slid year-over-year, but with a percentage drop less steep than June 2016, there are signals the market may be stabilizing. Closings slumped 13.8% from a year earlier to 25. This came after a 33.3% decline year-over-year in June.
A total of 286 new homes were sold during the 12 months that ended in July, down from 290 for the year that ended in June.
New home closings made up 4.7% of overall housing closings. A year earlier, new home closings represented 4.5% of total closings. Following a year-over-year decline in June, closings of new and existing homes also fell year-over-year in July.
Pricing and Mortgage Trends
In July, the average value of new homes saw a 6.7% hike year-over-year as it grew to $218,171 per unit. This gain is smaller than the 23.0% lift in June year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In July 2016, average mortgage size rose 18.3% from a year earlier to $167,225. In June 2016, average mortgage size gained 17.4% 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 86.2% of new closings in July 2015 to 92.0% of closings in July 2016. Meanwhile, attached units as a percentage of all new home closings declined to 8.0% of closings from 13.8% of closings.
There was a 9.0% fall year-over-year in the average unit size of newly sold homes to 1,860 square feet in July 2016. In June, the average size of new homes sold went from 1,816 square feet a year earlier to 2,980 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 15.3% of existing closings, lower than 27.2% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.8% in July from 11.8% a year earlier while REO closings as a percentage of existing home closings fell to 10.6% from 15.5% a year earlier.