Closings of new homes in the Laredo, TX market declined year-over-year in January, but the decline was less than the year-over-year decline in December. New home closings moved from 28 a year earlier to 3 after the figure moved from 42 in December 2014 to 3 in December 2015.
A total of 220 new homes were sold during the 12 months that ended in January, down from 245 for the year that ended in December.
On a percentage basis, new home closings as a part of total closings decreased to 2.6% from 13.9% a year earlier. Closings of new and existing homes slid year-over-year in January after also falling in December year-over-year.
Pricing and Mortgage Trends
The average new home price was $147,081, down from $216,128 a year earlier. This came after a 24.4% fall in December from a year earlier.
Average mortgage size on new homes fell from $206,058 to $146,296. Average mortgage size on new homes went from $182,355 in December 2014 to $149,925 in December 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in January 2016.
Foreclosures and real estate owned (REO) closings continued to rise in January from a year earlier and remained a burden on the market. Together, foreclosures plus REO closings made up 27.4% of existing home closings, up from 26.6% a year earlier. The percentage of existing home closings involving foreclosures fell to 13.3% in January from 16.8% a year earlier while REO closings as a percentage of existing home closings rose to 14.2% from 9.8%.