New home closings in the Lubbock, TX market slid year-over-year in April, but the drop in percentage terms was not as steep as March 2016, signaling market improvement. Closings dropped 45.7% from a year earlier to 19. In comparison, new home closings in the same month last year saw a 69.4% drop year-over-year in March.
A total of 245 new homes were sold during the 12 months that ended in April, down from 261 for the year that ended in March.
New home closings made up 3.2% of overall housing closings. This is a decline 5.9% of closings a year earlier. After rising year-over-year in March, closings of new and existing homes fell year-over-year in April.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 2.1% lift year-over-year in April to $246,787 per unit. This surge is smaller than the 5.9% gain in March year-over-year.
For newly sold homes, the average mortgage size rose year-over-year along with new home prices. Average mortgage size increased 5.0% to $222,011 in April from a year earlier. In March 2016, average mortgage size grew 6.4% 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 increased from 94.3% of new closings in April 2015 to all of closings in April 2016. At the same time, the share of new home closings belonging to attached units fell to no part of closings from 5.7% of closings.
The average unit size of newly sold homes slid 2.9% year-over-year to 2,492 square feet in April 2016. In March, the average size of new homes sold went from 2,038 square feet a year earlier to 3,340 square feet.
Foreclosures and real estate owned (REO) closings rose in April from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 11.4% of existing home closings, above 10.3% a year earlier. The percentage of existing home closings involving foreclosures rose to 5.1% in April from 3.9% a year earlier while REO closings as a percentage of existing home closings stayed level at 6.3%.