In May, closings of new homes jumped year-over-year in the Waco, TX market, rebounding from a year-over-year decline in April 2016. New home closings moved from 24 a year earlier to 26 after the figure moved from 28 in April 2015 to 14 in April 2016.
A total of 281 new homes were sold during the 12 months that ended in May, up from 279 for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 4.7% of closings, relatively stable from a year earlier. Closings of new and existing homes gained year-over-year in May after also rising in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes dropped 7.9% year-over-year in May to $223,530 per unit. This drop is a drop off from the 26.5% decline in April from a year earlier.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It declined 2.6% in May from a year earlier, reaching $207,915. Average mortgage size on new homes went from $267,665 in April 2015 to $208,524 in April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size grew 3.0% year-over-year to 2,450 square feet in May 2016. The average size of newly sold homes moved from 2,373 square feet in April 2015 to 1,349 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 15.0% of existing closings, lower than 15.9% a year earlier. The percentage of existing home closings involving foreclosures went from 9.5% in May 2015 to 8.6% in May 2016 and REO closings as a percentage of existing home closings stayed level at 6.5%.