Overview

New home sales sank in January in the Bradenton, FL market, and the percentage drop was steeper than January 2010, giving suggestion the market may be worsening. New home sales saw a 41.6% drop from a year earlier to 59. This followed a 30.3% drop in the same month a year earlier. As a percentage of overall housing sales, new home sales accounted for 4.8%, less than 6.3% of sales a year earlier.

Average Price of New Homes Gained in January 2011

Average price of newly sold homes saw a 2.1% rise in January to $245,042 per unit. This rise is a drop off from the 6.1% rise the year earlier.

Average Mortgage Size Showed Little Movement in January 2011

In January 2011, average mortgage size on newly sold homes moved from $190,087 to $191,425 from January 2010. In January 2010, average mortgage size on newly sold homes saw a 14.2% rise from a year earlier. The overall percentage of sale price that was being financed fell 1.1 percentage points to 78.1% in January 2011. In January 2010, there was a 5.6 percentage point rise from a year earlier.

Percentage of New Home Sales Belonging to Single-family Units Rose in January 2011

As a share of new home sales, single-family home sales have climbed from two years ago while the share belonging to attached units has fallen. Single-family home sales climbed from 58.6% of new sales in January 2009 to 74.6% of sales in January 2011. Conversely, the share of new home sales belonging to attached units dropped to 25.4% of sales from 41.4% of sales.

Average Unit Size of New Home Sales Increased in January 2011

The average unit size of newly sold homes rose 1.8% to 1,881 square feet in January 2011. The average size of newly sold homes moved from 1,842 square feet in January 2009 to 1,847 square feet in January 2010.

Fluctuations Over December 2010 and January 2011 Hint at Market Uncertainty

We are able to get a look at fluctuations in the marketplace by comparing the year-to-year changes in January to the year-to-year movements in December. Sales of new homes saw a 0.5% fall in December 2010 from a year earlier after sales declined 27.0% in December 2009 from a year earlier. The year-to-year changes in new home sales in each month are not similar, suggesting an uncertain time in the market.

Sales of New and Existing Homes Fell in January 2011

After rising a year earlier, sales of new and existing homes sank last month. Sales of new and existing homes fell 24.5% to 1,217 in January 2011. Sales increased to 1,611 units a year earlier.

There were suggestions of a slowing decline in the average price of new and existing homes as the figure slipped 3.6% to $181,397 in January from a year earlier. This came after the price fell 7.8% to $188,235 in January 2010 from the year earlier.

Foreclosures fell in January 2011

Foreclosures and real estate owned (REO) sales remained a burden on the market. Out of all existing home sales, foreclosures combined with REO sales made up 51.7% of sales. They represented 58.7% of sales in January 2010. Foreclosures declined to 19.2% of existing home sales last month from 39.9% a year earlier while REO sales rose to 32.6% of existing sales from 18.8% of sales a year earlier. Two years ago, foreclosures and REO sales accounted for 59.2% of existing home sales (27.3% foreclosures plus 31.9% REO sales).

Learn more about markets featured in this article: Bradenton, FL, Orlando, FL.