New home closings in the Laredo, TX market slid year-over-year in May, and the decline was by a larger percentage than the April 2016. New home closings moved from 27 a year earlier to 5 after the figure moved from 37 in April 2015 to 10 in April 2016.

A total of 101 new homes were sold during the 12 months that ended in May, down from 123 for the year that ended in April.

Last year, 27 of 250 total closings were new homes, and this percentage saw a decline as new home closings this year made up 5 of the 202 total closings. Following a year-over-year decline in April, closings of new and existing homes also declined year-over-year in May.

Pricing and Mortgage Trends

The average new home price was $230,870, up from $171,193 a year earlier. This was on the heels of a 33.0% decline in April from a year earlier.

From the year-ago figure of $162,954, the average mortgage size on new homes moved up to $210,147. Average mortgage size on new homes went from $188,207 in April 2015 to $134,160 in April 2016.

Other Market Trends

As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.

The average unit size of newly sold homes fell from 1,760 square feet a year earlier to 1,438 square feet.

Foreclosures and real estate owned (REO) closings rose in May from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 21.8% of existing home closings, higher than 21.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.1% in May from 7.6% a year earlier while REO closings as a percentage of existing home closings jumped to 16.8% from 13.9%.

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