In the Palm Bay, FL market, new home closings declined year-over-year in July, and the percentage fall, which was steeper than June 2016, gave hints of weakening market conditions. New home closings saw a fall of 29.4% from the year earlier to 72. This was after the housing market saw a 11.9% decline year-over-year in June.
A total of 1,080 new homes were sold during the 12 months that ended in July, down from 1,110 for the year that ended in June.
Out of all housing closings, new home closings represented 5.0%. This is a fall 6.0% of closings a year earlier. Closings of new and existing homes dropped year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes gained year-over-year to $277,246 in July, up 1.7% from last year. This boost is higher than the 1.1% hike in June year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 5.0% bump year-over-year to $260,687 in July. In June 2016, average mortgage size gained 8.6% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes climbed from 94.1% in July 2015 to 95.8% of closings in July 2016. At the same time, the share of new home closings belonging to attached units sank to 4.2% of closings from 5.9% of closings.
For all new homes sold, the average unit size gained 15.8% year-over-year to 2,422 square feet in July 2016. An increase was also seen in June 2016 when the average size of new homes sold jumped 11.6% to 2,457 square feet. In June, the average size of new homes sold went from 2,201 square feet a year earlier to 2,457 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. Combined, foreclosures plus REO closings accounted for 16.1% of existing home closings, below 33.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.0% in July from 13.3% a year earlier while REO closings as a percentage of existing home closings declined to 9.1% from 20.2% a year earlier.