Closings of new homes sank year-over-year in July in the Lubbock, TX market, but there were suggestions the market may be evening out with a percentage fall less steep as in June 2015. New home closings saw a drop of 53.3% from the year earlier to 28. This came on the heels of a 61.0% drop year-over-year in June.
A total of 352 new homes were sold during the 12 months that ended in July, down from 384 for the year that ended in June.
New home closings represented 2.9% of overall housing closings. This is a drop 8.6% of closings a year earlier. For new and existing homes, closings jumped year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $316,359 per unit in July, up 27.9%from a year earlier. This boost compares to a 2.8% decline in June from a year earlier.
The average mortgage size on new homes moved north year-over-year along with new home prices. In July 2015, the average mortgage size was $267,959, a 25.3% gain from a year earlier. Average mortgage size slid 1.2% in June 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 July 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
For all new homes sold, the average unit size rose 19.7% year-over-year to 2,769 square feet in July 2015. In June, the average size of new homes sold went from 2,405 square feet a year earlier to 2,037 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 6.6% of existing home closings, below 7.7% a year earlier. The percentage of existing home closings involving foreclosures went from 3.8% in July 2014 to 3.3% in July 2015 and REO closings moved from 3.9% of existing home closings in July 2014 to 3.4% in July 2015.