New home closings in the McAllen, TX market declined year-over-year in February, and there were signs of weakening market conditions with a percentage drop steeper than that of January 2016. New home closings saw a 49.1% drop from a year earlier to 27. This was after the housing market saw a 21.6% decline year-over-year in January.
A total of 566 new homes were sold during the 12 months that ended in February, down from 592 for the year that ended in January.
New home closings made up 5.8% of overall housing closings. This is down from the a year earlier when new home closings accounted for 9.4% of total closings. Closings of new and existing homes dropped year-over-year in February after also falling in January year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price moved from $169,509 in February 2015 to $170,889 in February 2016. This followed a 6.2% hike in January year-over-year.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. It climbed to $166,338 in February, a 5.6% surge. In January 2016, average mortgage size rose 8.3% 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 grew from 96.2% in February 2015 to all of closings in February 2016. Conversely, the share of new home closings belonging to attached units fell to no part of closings from 3.8% of closings.
There was a 19.0% decline year-over-year in the average unit size of newly sold homes to 1,717 square feet in February 2016. The average size of newly sold homes moved from 1,582 square feet in January 2015 to 1,700 square feet in January 2016.
Foreclosures and real estate owned (REO) closings declined in February from a year earlier, but stayed a drag on the market. Foreclosures and REO closings, taken together, made up 30.8% of existing closings, lower than 32.3% a year earlier. The percentage of existing home closings involving foreclosures rose to 18.1% in February from 16.5% a year earlier while REO closings as a percentage of existing home closings fell to 12.7% from 15.7% a year earlier.