In August, there was a drop year-over-year in new home closings in the Cape Coral, FL market, but compared with July 2015, the percentage drop was less steep, suggesting that the market may be leveling out. There was a 3.5% decline in new home closings from a year earlier. This came on the heels of a 5.9% fall year-over-year in July.
A total of 2,764 new homes were sold during the 12 months that ended in August, down from 2,772 for the year that ended in July.
New home closings accounted for 10.3% of overall housing closings. A year earlier, new home closings accounted for 10.2% of total closings. Following a year-over-year increase in July, closings of new and existing homes fell year-over-year in August.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes increased year-over-year to $366,661 in August, up 8.6% from last year. This hike is smaller than the 9.8% rise in July year-over-year.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. It rose to $267,452 in August, a 23.7% rise. In July 2015, average mortgage size rose 14.3% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes grew from 56.4% in August 2014 to 71.2% of closings in August 2015. Meanwhile, attached units as a percentage of all new home closings dropped to 28.8% of closings from 43.6% of closings.
The average unit size of newly sold homes climbed 1.6% year-over-year to 2,032 square feet in August 2015. In July, the average size of new homes sold went from 1,994 square feet a year earlier to 2,026 square feet. An increase was also seen in July 2015 when the average size of new homes sold jumped 1.6% to 2,026 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 23.7% of existing closings, lower than 31.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 8.3% in August from 13.9% a year earlier while REO closings as a percentage of existing home closings slid to 15.4% from 17.9% a year earlier.