In the McAllen, TX market, new home closings declined year-over-year in August, and the market seemed to be worsening in light of the percentage fall steeper than July 2015. Closings sank 26.7% from a year earlier to 44. This came on the heels of a 12.0% fall year-over-year in July.
A total of 600 new homes were sold during the 12 months that ended in August, down from 616 for the year that ended in July.
Out of all housing closings, new home closings made up 7.5%. A year ago, 8.4% of total closings were new home closings. Following a year-over-year increase in July, closings of new and existing homes slid year-over-year in August.
Pricing and Mortgage Trends
In August, there was a 1.4% drop year-over-year in the average per-unit price of newly sold homes, settling at $167,925. This decline compares to a 1.6% rise in July year-over-year.
The average mortgage size on newly sold homes saw a boost year-over-year in contrast to new home prices. It jumped 2.3% in August from a year earlier to $159,759. It went from $152,728 to $153,963 from July 2014 to July 2015.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. Attached unit closings rose from no part of all closings in August 2014 to 2.3% of closings in August 2015. Meanwhile, single-family home closings as a percentage of all new home closings fell to 97.7% of closings from all of closings.
The average unit size of newly sold homes jumped 14.8% year-over-year to 2,035 square feet in August 2015. The average size of newly sold homes moved from 1,941 square feet in July 2014 to 1,783 square feet in July 2015.
Foreclosures and real estate owned (REO) closings fell in August from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, represented 25.6% of existing closings, lower than 32.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 11.5% in August from 15.5% a year earlier while REO closings as a percentage of existing home closings dropped to 14.1% from 17.1% a year earlier.