In the Augusta, GA market in April, closings of new homes sank year-over-year, and there were hints the market may be worsening with a percentage decline steeper than that of March 2016. There was a 47.7% drop in new home closings from a year earlier. This followed a 35.8% fall year-over-year in March.
A total of 1,376 new homes were sold during the 12 months that ended in April, down from 1,448 for the year that ended in March.
As a percentage of overall housing closings, new home closings represented 9.8%. This is a drop 15.1% of closings a year earlier. Following a period of little movement in March from a year earlier, closings of new and existing homes fell year-over-year in April.
Pricing and Mortgage Trends
Average price of newly sold homes had a 6.5% rise year-over-year to $238,824 per unit in April. This bump is better than the 2.5% boost in March year-over-year.
The average mortgage size on newly sold homes saw a rise year-over-year along with new home prices. It rose 4.3% in April from a year earlier to $221,711. Average mortgage size jumped 3.6% in March 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in April 2016. Single-family home closings have accounted for 98.7% of new home closings while attached unit closings have made up 1.3% of closings.
There was a 5.9% drop year-over-year in the average unit size of newly sold homes to 2,568 square feet in April 2016. In March, the average size of new homes sold went from 2,669 square feet a year earlier to 2,740 square feet.
Foreclosures and real estate owned (REO) closings fell in April from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings made up 27.4% of existing home closings, below 30.8% a year earlier. The percentage of existing home closings involving foreclosures went from 12.8% in April 2015 to 13.3% in April 2016 and REO closings as a percentage of existing home closings dropped to 14.1% from 18.0% a year earlier.