There was an increase in new home closings in the Gainesville, GA market in March year-over-year, bouncing back from a drop in February 2016. Closings rose 7.2% from a year earlier to 74. In comparison, new home closings in the same month last year saw a 4.8% drop year-over-year in February.
A total of 760 new homes were sold during the 12 months that ended in March, up from 755 for the year that ended in February.
Out of all housing closings, new home closings represented 16.8%. New home closings were 17.7% of overall closings last year. Closings of new and existing homes grew year-over-year in March following a decline in February year-over-year.
Pricing and Mortgage Trends
The average price of new homes declined 5.4% year-over-year in March to $278,868 per unit. This drop is a drop off from the 8.2% decline in February from a year earlier.
For newly sold homes, the average mortgage size dropped year-over-year in contrast to average price of new homes. The average mortgage size sank to $226,107 in March, marking a 5.1% fall compared with last year. Average mortgage size dropped 1.6% 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 accounted for all of new home closings while attached unit closings have made up no part of closings.
The average unit size of newly sold homes declined 23.1% year-over-year to 2,119 square feet in March 2016. In February, the average size of new homes sold went from 2,785 square feet a year earlier to 4,678 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 17.2% of existing home closings, below 28.4% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.4% in March from 15.6% a year earlier while REO closings as a percentage of existing home closings stayed level at 12.8%.