In November, there was a drop year-over-year in new home closings in the McAllen, TX market, but the percentage drop was an improvement from October 2015, suggesting the market may be evening out. Closings dropped 24.6% from a year earlier to 43. This came on the heels of a 27.9% drop year-over-year in October.
A total of 595 new homes were sold during the 12 months that ended in November, down from 609 for the year that ended in October.
New home closings made up 8.1% of overall housing closings. This is a fall 9.4% of closings a year earlier. Closings of new and existing homes fell year-over-year in November after also falling in October year-over-year.
Pricing and Mortgage Trends
In November, the average price of newly sold homes climbed year-over-year to $172,848 per unit, a 9.4% hike. This lift compares to a 10.6% decline in October from a year earlier.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. Average mortgage size gained 14.1% to $160,134 in November from a year earlier. In October 2015, average mortgage size declined 8.5% 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. The share of new home closings belonging to single-family homes rose from 98.2% in November 2014 to all of closings in November 2015. At the same time, the share of new home closings belonging to attached units slid to no part of closings from 1.8% of closings.
For all new homes sold, the average unit size fell 12.9% year-over-year to 1,574 square feet in November 2015. In October, the average size of new homes sold went from 1,947 square feet a year earlier to 1,364 square feet.
Foreclosures and real estate owned (REO) closings decreased in November from a year earlier, but remained a drag on the market. Combined, foreclosures plus REO closings represented 30.5% of existing home closings, below 32.1% a year earlier. The percentage of existing home closings involving foreclosures went from 16.7% in November 2014 to 15.8% in November 2015 and REO closings moved from 15.4% of existing home closings in November 2014 to 14.6% in November 2015.