New home closings in the Naples, FL market fell year-over-year in July, but the percentage fall was less than that of June 2016, hinting that the market may be strengthening. There was a 5.5% fall in new home closings from a year earlier. This came on the heels of a 11.2% drop year-over-year in June.
A total of 2,715 new homes were sold during the 12 months that ended in July, down from 2,725 for the year that ended in June.
Of 1,008 total closings, 172 were of new homes. This is a gain from 13.4% of closings a year earlier. Closings of new and existing homes sank year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year 4.9% in July to $614,779 per unit. This boost is smaller than the 10.0% gain in June year-over-year.
For newly sold homes, the average mortgage size sank year-over-year in contrast to average price of new homes. Average mortgage size declined 5.6% to $354,889 in July from a year earlier. Average mortgage size climbed 6.4% in June 2016 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units grew from 13.7% of closings in July 2015 to 23.3% of closings in July 2016. At the same time, the share belonging to single-family homes declined to 76.7% of closings from 86.3% of closings.
There was a 6.9% boost year-over-year in the average unit size of newly sold homes to 2,488 square feet in July 2016. In June, the average size of new homes sold went from 2,111 square feet a year earlier to 1,910 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 8.0% of closings, below 16.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.2% in July from 6.6% a year earlier while REO closings as a percentage of existing home closings fell to 3.8% from 9.5% a year earlier.