In the El Paso, TX market, closings of new homes dropped year-over-year in July, and the percentage fall worsened from June 2015, indicating the market may be weakening. New home closings saw a decline of 73.9% from the year earlier to 18. In comparison, new home closings in the same month last year saw a 68.6% decline year-over-year in June.
A total of 362 new homes were sold during the 12 months that ended in July, down from 413 for the year that ended in June.
New home closings accounted for 4.7% of overall housing closings. This is down from the a year earlier when new home closings made up 8.2% of total closings. Following a year-over-year decline in June, closings of new and existing homes also slid year-over-year in July.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $205,647 in July, up 19.7% from last year. This gain follows a move from $178,638 per unit to $178,072 from June 2014 to June 2015.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In July 2015, the average mortgage size was $192,713, a 17.4% gain from a year earlier. Average mortgage size declined 5.5% in June 2015 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings gained from 94.2% of new closings in July 2014 to all of closings in July 2015. At the same time, the share of new home closings belonging to attached units sank to no part of closings from 5.8% of closings.
There was a 9.7% hike year-over-year in the average unit size of newly sold homes to 2,081 square feet in July 2015. In June, the average size of new homes sold went from 1,915 square feet a year earlier to 2,080 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in July from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, made up 27.7% of existing home closings, higher than 25.3% a year earlier. The percentage of existing home closings involving foreclosures rose to 18.7% in July from 10.8% a year earlier while REO closings as a percentage of existing home closings dropped to 9.1% from 14.5% a year earlier.