In January, closings of new homes in the Fort Worth, TX market gained year-over-year, and the percentage hike was higher than December 2015, implying the market may be improving. New home closings saw a hike of 17.2% from the year earlier to 1,548. This came on the heels of a 14.5% boost year-over-year in December.
A total of 22,707 new homes were sold during the 12 months that ended in January, up from 22,480 for the year that ended in December.
New home closings accounted for 16.7% of overall housing closings. This marks a rise from 14.3% of total closings a year earlier. After rising in December from a year earlier, closings of new and existing homes stayed steady in January.
Pricing and Mortgage Trends
The average price of new homes was $335,011 per unit in January, up 4.0%from a year earlier. This boost is smaller than the 6.5% hike in December year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In January 2016, the average mortgage size was $288,753, a 4.4% gain from a year earlier. In December 2015, average mortgage size gained 7.4% 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 jumped from 95.2% in January 2015 to 96.8% of closings in January 2016. At the same time, the share of new home closings belonging to attached units sank to 3.2% of closings from 4.8% of closings.
There was a 8.8% hike year-over-year in the average unit size of newly sold homes to 3,180 square feet in January 2016. An increase was also seen in December 2015 when the average size of new homes sold grew 5.9% to 3,142 square feet. In December, the average size of new homes sold went from 2,968 square feet a year earlier to 3,142 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 17.7% of existing home closings, below 22.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.1% in January from 13.4% a year earlier while REO closings as a percentage of existing home closings fell to 7.6% from 9.3% a year earlier.