In the Killeen, TX market, new home closings dropped year-over-year in December, sliding down after a gain in November 2015. There was a 2.9% decline in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 8.6% boost year-over-year in November.
A total of 1,551 new homes were sold during the 12 months that ended in December, down from 1,555 for the year that ended in November.
As a percentage of overall housing closings, new home closings made up 21.2%. This is down from the a year earlier when new home closings accounted for 22.3% of total closings. For new and existing homes, closings increased year-over-year in December after also increasing in November year-over-year.
Pricing and Mortgage Trends
In December, the average price of newly sold homes increased 7.7% year-over-year to $220,949 per unit. This surge follows a move from $197,036 per unit to $195,836 from November 2014 to November 2015.
There was a gain year-over-year in the average mortgage size on new homes along with new home prices. It grew 5.9% in December from a year earlier to $209,172. Average mortgage size jumped 2.3% in November 2015 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 December 2015. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes increased 10.8% year-over-year to 2,544 square feet in December 2015. The average size of newly sold homes moved from 2,083 square feet in November 2014 to 2,513 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to increase in December from a year earlier and remained a drag on the market. Together, foreclosures plus REO closings accounted for 31.3% of existing home closings, up from 26.2% a year earlier. The percentage of existing home closings involving foreclosures sank to 11.5% in December from 13.8% a year earlier while REO closings as a percentage of existing home closings rose to 19.8% from 12.3%.