In the McAllen, TX market in July, new home closings declined year-over-year, a drop following an increase in June 2015. New home closings saw a decline of 6.7% from the year earlier to 42. This came after a 29.8% climb year-over-year in June.
A total of 570 new homes were sold during the 12 months that ended in July, down from 573 for the year that ended in June.
Out of all housing closings, new home closings made up 5.1%. This is down from the 6.3% of closings a year earlier. After dropping in June from a year earlier, closings of new and existing homes grew year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes fell by 2.2% year-over-year to $163,562 per unit in July. This fall compares to a 8.9% boost in June year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. Average mortgage size slid 3.3% to $151,717 in July from a year earlier. In June 2015, average mortgage size rose 9.1% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units grew from no part of closings in July 2014 to 2.4% of closings in July 2015. Meanwhile, single-family home closings as a percentage of all new home closings slid to 97.6% of closings from all of closings.
There was a move in the average unit size of newly sold homes from 1,666 square feet in July 2014 to 1,670 square feet in July 2015. In June 2015, the average size of newly sold homes dropped 6.4% from the year earlier. The average size of newly sold homes moved from 1,729 square feet in June 2014 to 1,618 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 23.4% of existing home closings, down from 27.0% a year earlier. The percentage of existing home closings involving foreclosures went from 12.5% in July 2014 to 11.9% in July 2015 and REO closings as a percentage of existing home closings sank to 11.5% from 14.5% a year earlier.