In December, there was a drop year-over-year in new home closings in the Brownsville, TX market, and the market seemed to be worsening in light of the percentage decline steeper than November 2015. New home closings saw a drop of 23.8% from the year earlier to 16. This was after the housing market saw a 6.2% drop year-over-year in November.
A total of 223 new homes were sold during the 12 months that ended in December, down from 228 for the year that ended in November.
Out of all housing closings, new home closings accounted for 5.0%. New home closings were 4.4% of overall closings last year. Following a year-over-year decline in November, closings of new and existing homes also fell year-over-year in December.
Pricing and Mortgage Trends
In December, the average price of newly sold homes fell 5.2% year-over-year to $154,543 per unit. This drop is a drop off from the 16.1% fall in November from a year earlier.
The average mortgage size on newly sold homes saw a fall year-over-year in contrast to new home prices. In December 2015, average mortgage size fell 1.9% from a year earlier to $145,740. In November 2015, average mortgage size sank 21.1% from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in December 2015. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes declined 38.4% year-over-year to 1,060 square feet in December 2015. A fall was also seen in November 2015 when the average size of new homes sold sank 29.7% to 1,226 square feet. The average size of newly sold homes moved from 1,745 square feet in November 2014 to 1,226 square feet in November 2015.
Foreclosures and real estate owned (REO) closings rose in December from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings made up 24.9% of existing home closings, up from 24.7% a year earlier. The percentage of existing home closings involving foreclosures went from 13.2% in December 2014 to 12.5% in December 2015 and REO closings moved from 11.5% of existing home closings in December 2014 to 12.5% in December 2015.