The Savannah, GA market saw a drop in new home closings year-over-year in May, but the decline in percentage terms was an improvement from April 2016, suggesting that the market may be evening out. There was a 39.2% decline in new home closings from a year earlier. This was after the housing market saw a 50.5% drop year-over-year in April.
A total of 976 new homes were sold during the 12 months that ended in May, down from 1,016 for the year that ended in April.
Out of all housing closings, new home closings made up 8.5%. This is a fall 14.4% of closings a year earlier. Following a drop in April year-over-year, closings of new and existing homes jumped year-over-year in May.
Pricing and Mortgage Trends
In May, there was a 5.0% bump year-over-year in the average price of newly sold homes, reaching $240,655 per unit. This hike compares to a 7.1% decline in April from a year earlier.
For newly sold homes, the average mortgage size gained year-over-year along with new home prices. It rose to $229,301 in May, a 11.7% gain. In April 2016, average mortgage size slid 5.3% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have dipped. Attached unit closings increased from 2.9% of all closings in May 2015 to 8.1% of closings in May 2016. At the same time, the share belonging to single-family homes dropped to 91.9% of closings from 97.1% of closings.
For all new homes sold, the average unit size dropped 8.2% year-over-year to 2,259 square feet in May 2016. In April, the average size of new homes sold went from 2,352 square feet a year earlier to 1,337 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. Out of all existing home closings, foreclosures combined with REO closings accounted for 19.6% of closings, below 24.4% a year earlier. The percentage of existing home closings involving foreclosures slid to 6.6% in May from 9.1% a year earlier while REO closings as a percentage of existing home closings declined to 13.0% from 15.3% a year earlier.