Closings of new homes in the Midland, TX market dropped year-over-year in March, and the decline was by a larger percentage than the February 2016. New home closings moved from 62 a year earlier to 2 after the figure moved from 50 in February 2015 to 4 in February 2016.
A total of 163 new homes were sold during the 12 months that ended in March, down from 223 for the year that ended in February.
On a percentage basis, new home closings as a part of total closings decreased to 1.0% from 22.0% a year earlier. Following a year-over-year decline in February, closings of new and existing homes also slid year-over-year in March.
Pricing and Mortgage Trends
The average new home price was $340,625, up from $295,533 a year earlier. This followed a 23.3% drop in February from a year earlier.
From the year-ago figure of $267,294, the average mortgage size on new homes moved up to $272,500. Average mortgage size on new homes went from $267,518 in February 2015 to $203,882 in February 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 March 2016.
The average unit size of newly sold homes rose from 2,269 square feet a year earlier to 2,743 square feet.
Foreclosures and real estate owned (REO) closings rose in March from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 12.4% of existing home closings, up from 10.5% a year earlier. The percentage of existing home closings involving foreclosures went from 4.5% in March 2015 to 5.2% in March 2016 and REO closings as a percentage of existing home closings increased to 7.2% from 5.9%.