New home closings dropped year-over-year in August in the Jacksonville, FL market, but the fall in percentage terms was not as steep as July 2015, signaling market improvement. There was a 5.0% drop in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 6.0% fall year-over-year in July.
A total of 4,921 new homes were sold during the 12 months that ended in August, down from 4,941 for the year that ended in July.
New home closings accounted for 11.8% of overall housing closings. They represented 12.6% of closings a year earlier. For new and existing homes, closings gained year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price grew 5.3% year-over-year in August to $289,709 per unit. This surge is better than the 4.3% lift in July year-over-year.
The average mortgage size on newly sold homes gained year-over-year along with the average price of new homes. In August 2015, average mortgage size rose 6.9% from a year earlier to $247,933. In July 2015, average mortgage size climbed 3.4% from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 93.1% of new home closings to 92.2% of closings while attached units have gone from 6.9% of closings to 7.8% of closings.
There was a 13.0% fall year-over-year in the average unit size of newly sold homes to 2,140 square feet in August 2015. For newly sold homes, an average size decline contrasting with an average price lift was also seen in July 2015 when the average size of newly sold homes dropped 8.9% to 2,308 square feet. In July, the average size of new homes sold went from 2,533 square feet a year earlier to 2,308 square feet.
Foreclosures and real estate owned (REO) closings declined in August from a year earlier, but stayed a drag on the market. Together, foreclosures plus REO closings accounted for 39.5% of existing home closings, down from 51.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 18.8% in August from 31.1% a year earlier while REO closings as a percentage of existing home closings stayed level at 20.7%.