In March, there was a fall year-over-year in new home closings in the Pensacola, FL market, but there were suggestions the market may be evening out from a percentage fall less than February 2016. Closings dropped 78.9% from a year earlier to 23. This came on the heels of a 79.5% decline year-over-year in February.
A total of 791 new homes were sold during the 12 months that ended in March, down from 877 for the year that ended in February.
New home closings represented 2.8% of overall housing closings. This is down from the 11.2% of closings a year earlier. Closings of new and existing homes slid year-over-year in March after also falling in February year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes slid 12.3% year-over-year in March to $189,372 per unit. This decline is a drop off from the 16.2% drop in February from a year earlier.
For newly sold homes, the average mortgage size saw a drop year-over-year in contrast to new home prices. It dropped 10.0% in March from a year earlier, reaching $182,767. Average mortgage size fell 9.3% in February 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in March 2016. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
There was a 13.4% decline year-over-year in the average unit size of newly sold homes to 1,750 square feet in March 2016. The average size of newly sold homes moved from 2,146 square feet in February 2015 to 2,146 square feet in February 2016.
Foreclosures and real estate owned (REO) closings fell in March from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings accounted for 30.8% of existing home closings, down from 40.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 13.7% in March from 16.6% a year earlier while REO closings as a percentage of existing home closings slid to 17.1% from 23.5% a year earlier.