There was a rise in new home closings in the Bradenton, FL market in May year-over-year, and the percentage lift was higher than April 2016, implying the market may be improving. New home closings saw a rise of 42.2% from the year earlier to 408. In comparison, new home closings in the same month last year saw a 15.4% boost year-over-year in April.
A total of 4,161 new homes were sold during the 12 months that ended in May, up from 4,040 for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 16.8%. This is better than the 10.1% of closings a year earlier. Closings of new and existing homes slid year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes went from $351,327 in May 2015 to $350,389 in May 2016. This followed a 4.6% gain in April year-over-year.
The average mortgage size on newly sold homes saw a drop year-over-year in contrast to new home prices. It dropped 4.4% in May from a year earlier to $249,895. Average mortgage size grew 7.1% in April 2016 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 73.9% of new home closings to 74.3% of closings while attached units have gone from 26.1% of closings to 25.7% of closings.
There was a 14.5% bump year-over-year in the average unit size of newly sold homes to 2,444 square feet in May 2016. The average size of newly sold homes moved from 2,181 square feet in April 2015 to 2,424 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 13.1% of existing home closings, below 24.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.8% in May from 10.5% a year earlier while REO closings as a percentage of existing home closings slid to 7.4% from 14.0% a year earlier.