In the Fort Worth, TX market in May, new home closings jumped year-over-year, and with a stronger bump in comparison with April 2016, the market seems to be strengthening. There was a 24.5% hike in new home closings from a year earlier. This came on the heels of a 7.3% hike year-over-year in April.
A total of 24,325 new homes were sold during the 12 months that ended in May, up from 23,879 for the year that ended in April.
Out of all housing closings, new home closings made up 16.4%. This marks a rise from 13.3% of total closings a year earlier. After dropping in April from a year earlier, closings of new and existing homes increased year-over-year in May.
Pricing and Mortgage Trends
The average value for new homes sold in May 2016 was $345,896, a move from $346,653 a year earlier. This was on the heels of a 4.0% lift in April year-over-year.
In May 2016, average mortgage size on newly sold homes moved from $295,415 to $297,888 from May 2015. In April 2016, average mortgage size on newly sold homes saw a 4.8% gain year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings jumped from 94.1% of new closings in May 2015 to 95.7% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings slid to 4.3% of closings from 5.9% of closings.
The average unit size of newly sold homes increased 3.1% year-over-year to 3,126 square feet in May 2016. In April, the average size of new homes sold went from 2,941 square feet a year earlier to 3,114 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 10.2% of existing closings, lower than 13.1% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.9% in May from 6.6% a year earlier while REO closings as a percentage of existing home closings declined to 5.3% from 6.6% a year earlier.