The Midland, TX market saw a drop in new home closings year-over-year in February, but the decline was less than the year-over-year decline in January. New home closings moved from 50 a year earlier to 4 after the figure moved from 51 in January 2015 to 3 in January 2016.
A total of 223 new homes were sold during the 12 months that ended in February, down from 269 for the year that ended in January.
On a percentage basis, new home closings as a part of total closings decreased to 3.2% from 23.5% a year earlier. Following a year-over-year decline in January, closings of new and existing homes also slid year-over-year in February.
Pricing and Mortgage Trends
The average value of newly sold homes in February 2016 was $240,961, down from last year's $314,249. This followed a 12.0% hike in January year-over-year.
There was a decline in average mortgage size on new homes, going from $267,518 last year to $203,882 in February 2016. Average mortgage size on new homes went from $271,345 in January 2015 to $292,391 in January 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in February 2016.
The average unit size of newly sold homes fell from 2,316 square feet a year earlier to 1,593 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in February, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 6.6% of existing home closings, below 8.6% a year earlier. The percentage of existing home closings involving foreclosures fell to 1.7% in February from 4.9% a year earlier while REO closings as a percentage of existing home closings climbed to 5.0% from 3.7%.