There was a rise in new home closings in the Naples, FL market in May year-over-year, and with a stronger gain than April 2016, there are suggestions the market may be bolstering. New home closings saw a hike of 19.9% from the year earlier to 217. This came after a 5.7% boost year-over-year in April.
A total of 2,743 new homes were sold during the 12 months that ended in May, up from 2,707 for the year that ended in April.
Out of all housing closings, new home closings represented 15.0%. This is better than the 11.7% of closings a year earlier. Following a year-over-year decline in April, closings of new and existing homes also slid year-over-year in May.
Pricing and Mortgage Trends
Average price of newly sold homes had a 1.7% lift year-over-year to $570,182 per unit in May. This bump is smaller than the 9.4% rise in April year-over-year.
For newly sold homes, the average mortgage size rose year-over-year along with new home prices. The average mortgage size rose to $393,872 in May, marking a 11.5% rise compared with a year earlier. In April 2016, average mortgage size fell 3.7% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased from 32.6% of closings in May 2015 to 39.6% of closings in May 2016. Conversely, the share belonging to single-family homes declined to 60.4% of closings from 67.4% of closings.
There was a 1.7% hike year-over-year in the average unit size of newly sold homes to 2,276 square feet in May 2016. In April, the average size of new homes sold went from 2,282 square feet a year earlier to 2,291 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 7.9% of existing closings, lower than 12.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 4.2% in May from 5.9% a year earlier while REO closings as a percentage of existing home closings dropped to 3.7% from 6.6% a year earlier.