New home closings in the Deltona, FL market climbed year-over-year in July, and the percentage gain was sharper than June 2016, hinting that the market may be strengthening. New home closings saw a rise of 25.4% from the year earlier to 84. This came after a 21.3% rise year-over-year in June.
A total of 1,107 new homes were sold during the 12 months that ended in July, up from 1,090 for the year that ended in June.
Of 1,311 total closings, 84 were of new homes. This is an increase on a percentage basis, as new home closings were 4.5% of total closings a year ago. Following a year-over-year decline in June, closings of new and existing homes also fell year-over-year in July.
Pricing and Mortgage Trends
In July, the average price of newly sold homes jumped 6.6% year-over-year to $261,863 per unit. This surge compares to a 4.4% fall in June from a year earlier.
Average mortgage size on new homes increased year-over-year along with new home prices. In July 2016, the average mortgage size on newly sold homes saw a 10.4% hike from a year earlier. In June 2016, average mortgage size rose 3.8% 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. Single-family home closings increased from 88.1% of new closings in July 2015 to 91.7% of closings in July 2016. At the same time, the share of new home closings belonging to attached units sank to 8.3% of closings from 11.9% of closings.
There was a 15.2% drop year-over-year in the average unit size of newly sold homes to 1,937 square feet in July 2016. In June, the average size of new homes sold went from 2,410 square feet a year earlier to 2,628 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 represented 23.1% of closings, below 37.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 11.2% in July from 17.1% a year earlier while REO closings as a percentage of existing home closings dropped to 12.0% from 20.0% a year earlier.