In the Miami, FL market in July, new home closings climbed year-over-year, but with an increase less steep than that of June 2015, the market seemed to be showing signs of leveling out. There was a 7.2% jump in new home closings from a year earlier. This came on the heels of a 19.2% jump year-over-year in June.
A total of 6,938 new homes were sold during the 12 months that ended in July, up from 6,901 for the year that ended in June.
As a percentage of overall housing closings, new home closings accounted for 3.8% of overall housing closings. They made up 3.5% of closings a year earlier. Closings of new and existing homes remained steady in July after being unchanged in June from a year earlier.
Pricing and Mortgage Trends
The average price of new homes declined by 3.2% year-over-year to $581,258 per unit in July. This fall is a drop off from the 11.7% decline in June from a year earlier.
Average mortgage size on new homes slid year-over-year in contrast to new home prices. Average mortgage size fell by 1.8% from a year earlier, settling at $384,533 in July. Average mortgage size grew 7.4% in June 2015 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units jumped from 43.0% of closings in July 2014 to 52.1% of closings in July 2015. Conversely, the share belonging to single-family homes fell to 47.9% of closings from 57.0% of closings.
There was a 10.3% fall year-over-year in the average unit size of newly sold homes to 2,153 square feet in July 2015. In June, the average size of new homes sold went from 2,402 square feet a year earlier to 2,069 square feet. A drop was also seen in June 2015 when the average size of new homes sold dropped 13.9% to 2,069 square feet.
Foreclosures and real estate owned (REO) closings fell in July from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, accounted for 32.1% of existing closings, lower than 41.6% a year earlier. The percentage of existing home closings involving foreclosures fell to 14.5% in July from 22.6% a year earlier while REO closings as a percentage of existing home closings dropped to 17.6% from 19.1% a year earlier.