In the Houston, TX market, new home closings sank year-over-year in August, sliding down after a bump in July 2015. Closings fell 25.1% from a year earlier to 1,517. This came after a 8.6% climb year-over-year in July.
A total of 23,158 new homes were sold during the 12 months that ended in August, down from 23,667 for the year that ended in July.
Out of all housing closings, new home closings represented 16.0%. A year earlier, new home closings accounted for 16.5% of total closings. For new and existing homes, closings sank in August after also declining in July year-over-year.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year in August to $314,151 per unit, a rise of 3.8%. This surge is smaller than the 6.6% bump in July year-over-year.
For newly sold homes, the average mortgage size gained year-over-year along with new home prices. The average mortgage size rose to $271,703 in August, marking a 4.8% lift compared with a year earlier. In July 2015, average mortgage size on newly sold homes saw a 8.1% rise year-over-year from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in August 2015. Single-family home closings have accounted for 98.2% of new home closings while attached unit closings have made up 1.8% of closings.
There was a 14.3% fall year-over-year in the average unit size of newly sold homes to 2,670 square feet in August 2015. The average size of newly sold homes moved from 3,064 square feet in July 2014 to 3,144 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 10.5% of existing home closings, below 14.5% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.6% in August from 7.9% a year earlier and REO closings moved from 6.5% of existing home closings in August 2014 to 5.9% in August 2015.