In the Lubbock, TX market in March, closings of new homes slid year-over-year, and there were signals of weakening market conditions with a percentage drop steeper than that of February 2016. New home closings saw a fall of 69.4% from the year earlier to 15. In comparison, new home closings in the same month last year saw a 43.8% fall year-over-year in February.
A total of 261 new homes were sold during the 12 months that ended in March, down from 295 for the year that ended in February.
Out of all housing closings, new home closings made up 2.4%. This is down from the a year earlier when new home closings accounted for 8.7% of total closings. Closings of new and existing homes jumped year-over-year in March following a drop in February year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 5.9% surge year-over-year to $232,700 per unit in March. This bump is smaller than the 21.0% lift in February year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size saw a 6.4% hike year-over-year to $204,900 in March. In February 2016, average mortgage size on newly sold homes saw a 23.3% surge year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes gained from 89.8% in March 2015 to all of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings fell to no part of closings from 10.2% of closings.
There was a 63.9% rise year-over-year in the average unit size of newly sold homes to 3,340 square feet in March 2016. The average size of newly sold homes moved from 2,062 square feet in February 2015 to 3,200 square feet in February 2016. An increase in both the average size and price of newly sold homes was also seen in February 2016 when the average size increased 55.2% to 3,200 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in March, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 10.8% of closings, below 11.7% a year earlier. The percentage of existing home closings involving foreclosures went from 5.4% in March 2015 to 5.1% in March 2016 and REO closings moved from 6.2% of existing home closings in March 2015 to 5.6% in March 2016.