In the San Antonio, TX market, new home closings dropped year-over-year in May, but the percentage fall, which was less steep than in April 2016, seemed to be suggesting market improvement. There was a 1.4% decline in new home closings from a year earlier. This came after a 7.6% drop year-over-year in April.
A total of 8,700 new homes were sold during the 12 months that ended in May, down from 8,711 for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 17.7% of overall housing closings. A year earlier, new home closings accounted for 17.5% of total closings. Closings of new and existing homes fell year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes gained year-over-year to $282,037 in May, up 1.7% from last year. This hike is smaller than the 5.7% surge in April year-over-year.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. In May 2016, the average mortgage size on newly sold homes saw a 3.8% bump from a year earlier. Average mortgage size grew 6.6% in April 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings rose from 98.3% of new closings in May 2015 to 99.9% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings fell to 0.1% of closings from 1.7% of closings.
There was a 7.4% rise year-over-year in the average unit size of newly sold homes to 2,874 square feet in May 2016. An increase was also seen in April 2016 when the average size of new homes sold gained 10.0% to 2,808 square feet. In April, the average size of new homes sold went from 2,553 square feet a year earlier to 2,808 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 13.8% of existing closings, lower than 15.9% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.1% in May from 7.1% a year earlier and REO closings moved from 8.9% of existing home closings in May 2015 to 8.7% in May 2016.