In the El Paso, TX market in March, closings of new homes fell year-over-year, and there were signs the market may be weakening with a percentage decline steeper than February 2016. New home closings saw a 87.0% decline from a year earlier to 28. This came after a 82.8% drop year-over-year in February.
A total of 1,081 new homes were sold during the 12 months that ended in March, down from 1,269 for the year that ended in February.
Out of all housing closings, new home closings represented 4.4%. This is a drop 21.4% of closings a year earlier. For new and existing homes, closings declined in March after also declining in February year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes increased year-over-year to $213,638 in March, up 20.4% from last year. This bump is smaller than the 21.3% boost in February year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In March 2016, the average mortgage size on newly sold homes saw a 11.6% hike from a year earlier. In February 2016, average mortgage size on newly sold homes saw a 16.3% bump year-over-year 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 jumped from 97.7% of new closings in March 2015 to all of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings sank to no part of closings from 2.3% of closings.
There was a 6.9% boost year-over-year in the average unit size of newly sold homes to 1,923 square feet in March 2016. In February, the average size of new homes sold went from 1,998 square feet a year earlier to 1,840 square feet.
Combined, foreclosures plus REO closings represented 27.6% of existing home closings. In March 2015, they represented 27.6%. The percentage of existing home closings involving foreclosures rose to 14.8% in March from 11.1% a year earlier while REO closings as a percentage of existing home closings fell to 12.8% from 16.5% a year earlier.