Closings of new homes fell year-over-year in April in the Houston, TX market, and the percentage drop was steeper than March 2016, suggesting the market may be worsening. There was a 13.7% fall in new home closings from a year earlier. This was after the housing market saw a 2.3% decline year-over-year in March.
A total of 25,262 new homes were sold during the 12 months that ended in April, down from 25,556 for the year that ended in March.
Out of all housing closings, new home closings accounted for 18.0%. This is a fall 19.2% of closings a year earlier. Following a year-over-year decline in March, closings of new and existing homes also dropped year-over-year in April.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes grew year-over-year to $324,919 in April, up 1.8% from last year. This lift is smaller than the 1.9% rise in March year-over-year.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. It jumped to $278,363 in April, a 1.7% hike. Average mortgage size jumped 1.9% in March 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 98.4% of new home closings to 97.9% of closings while attached units have gone from 1.6% of closings to 2.1% of closings.
There was a 2.4% rise year-over-year in the average unit size of newly sold homes to 3,043 square feet in April 2016. An increase was also seen in March 2016 when the average size of new homes sold jumped 7.1% to 3,151 square feet. The average size of newly sold homes moved from 2,943 square feet in March 2015 to 3,151 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 11.7% of closings, below 14.3% a year earlier. The percentage of existing home closings involving foreclosures went from 6.7% in April 2015 to 6.2% in April 2016 and REO closings as a percentage of existing home closings sank to 5.6% from 7.6% a year earlier.