New home closings fell year-over-year in February in the San Antonio, TX market, and the percentage decline worsened from January 2016, indicating the market may be weakening. New home closings saw a drop of 7.2% from the year earlier to 632. This was after the housing market saw a 2.9% decline year-over-year in January.
A total of 8,680 new homes were sold during the 12 months that ended in February, down from 8,729 for the year that ended in January.
New home closings made up 17.8% of overall housing closings. This is down from the 20.7% of closings a year earlier. After dropping in January from a year earlier, closings of new and existing homes gained year-over-year in February.
Pricing and Mortgage Trends
In February, there was a 11.4% rise year-over-year in the average price of newly sold homes, reaching $287,195 per unit. This gain is an improvement over the 7.2% hike in January year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 10.8% rise year-over-year to $263,552 in February. Average mortgage size gained 8.5% in January 2016 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. Single-family home closings rose from 98.7% of new closings in February 2015 to 99.7% of closings in February 2016. At the same time, the share of new home closings belonging to attached units fell to 0.3% of closings from 1.3% of closings.
There was a 6.7% hike year-over-year in the average unit size of newly sold homes to 2,598 square feet in February 2016. The average size of newly sold homes moved from 2,410 square feet in January 2015 to 2,807 square feet in January 2016. An increase was also seen in January 2016 when the average size of new homes sold rose 16.5% to 2,807 square feet.
Foreclosures and real estate owned (REO) closings rose in February from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 19.9% of existing home closings, higher than 18.2% a year earlier. The percentage of existing home closings involving foreclosures went from 8.7% in February 2015 to 9.6% in February 2016 and REO closings moved from 9.4% of existing home closings in February 2015 to 10.4% in February 2016.