In the Brownsville, TX market in July, new home closings slid year-over-year, but the market seemed to be suggesting improvement with a percentage drop less steep than in June 2015. New home closings saw a 17.9% drop from a year earlier to 23. This came on the heels of a 41.9% fall year-over-year in June.
A total of 240 new homes were sold during the 12 months that ended in July, down from 245 for the year that ended in June.
Out of all housing closings, new home closings made up 4.4%. New home closings were 5.0% of overall closings last year. Following a year-over-year decline in June, closings of new and existing homes also dropped year-over-year in July.
Pricing and Mortgage Trends
In July, the average price for new home closings was $134,764, a 5.0% fall from last year. This decline is a drop off from the 16.9% fall in June from a year earlier.
For newly sold homes, the average mortgage size saw a fall year-over-year in contrast to new home prices. In July 2015, average mortgage size on new homes sold was $122,332, down 6.6% from a year earlier. Average mortgage size declined 14.5% in June 2015 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes rose from 96.4% in July 2014 to all of closings in July 2015. Conversely, the share of new home closings belonging to attached units fell to no part of closings from 3.6% of closings.
The average unit size of newly sold homes grew 20.8% year-over-year to 2,069 square feet in July 2015. The average size of newly sold homes moved from 1,684 square feet in June 2014 to 1,792 square feet in June 2015. This gain was opposite the price decline, a pattern also seen in June 2015 when the average size of newly sold homes increased 6.4% to 1,792 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 18.8% of existing closings, lower than 23.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 9.3% in July from 12.7% a year earlier and REO closings moved from 10.4% of existing home closings in July 2014 to 9.5% in July 2015.