In the McAllen, TX market in September, closings of new homes declined year-over-year, and there were hints the market may be worsening with a percentage decline steeper than that of August 2015. New home closings saw a fall of 31.0% from the year earlier to 40. This was after the housing market saw a 23.0% drop year-over-year in August.
A total of 616 new homes were sold during the 12 months that ended in September, down from 634 for the year that ended in August.
Out of all housing closings, new home closings represented 6.4%. This is down from the 8.8% of closings a year earlier. Following a year-over-year decline in August, closings of new and existing homes also sank year-over-year in September.
Pricing and Mortgage Trends
Average price of newly sold homes had a 14.5% boost year-over-year to $195,253 per unit in September. This bump compares to a 2.4% fall in August from a year earlier.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. It rose to $184,670 in September, a 19.4% gain. Average mortgage size went from $155,477 in August 2014 to $156,970 in August 2015.
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. Single-family home closings gained from 98.3% of new closings in September 2014 to all of closings in September 2015. At the same time, the share of new home closings belonging to attached units declined to no part of closings from 1.7% of closings.
For all new homes sold, the average unit size climbed 35.5% year-over-year to 2,501 square feet in September 2015. The average size of newly sold homes moved from 1,796 square feet in August 2014 to 2,035 square feet in August 2015.
Foreclosures and real estate owned (REO) closings decreased in September from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings accounted for 26.4% of existing home closings, down from 27.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 11.9% in September from 14.3% a year earlier while REO closings as a percentage of existing home closings increased to 14.5% from 13.1%.