In the Houston, TX market, closings of new homes sank year-over-year in September, a downhill move after a surge in August 2015. There was a 16.1% decline in new home closings from a year earlier. This was after the housing market saw a 6.0% climb year-over-year in August.
A total of 24,226 new homes were sold during the 12 months that ended in September, down from 24,534 for the year that ended in August.
As a percentage of overall housing closings, new home closings made up 16.3%. This is down from the 18.1% of closings a year earlier. For new and existing homes, closings fell in September after also declining in August year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes jumped year-over-year 4.2% in September to $309,912 per unit. This boost is smaller than the 7.7% lift in August year-over-year.
The average mortgage size on newly sold homes climbed year-over-year along with the average price of new homes. Average mortgage size rose 5.3% to $269,241 in September from a year earlier. Average mortgage size grew 8.2% in August 2015 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 97.8% of new home closings to 97.4% of closings while attached units have gone from 2.2% of closings to 2.6% of closings.
For all new homes sold, the average unit size dropped 9.3% year-over-year to 2,785 square feet in September 2015. In August, the average size of new homes sold went from 3,113 square feet a year earlier to 3,258 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 11.4% of existing home closings, down from 13.7% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.1% in September from 6.4% a year earlier while REO closings as a percentage of existing home closings stayed level at 7.3%.