In the Midland, TX market in January, new home closings dropped year-over-year, and the decline was by a larger percentage than the December 2015. New home closings moved from 51 a year earlier to 3 after the figure moved from 64 in December 2014 to 5 in December 2015.
A total of 269 new homes were sold during the 12 months that ended in January, down from 317 for the year that ended in December.
Last year, 51 of 205 total closings were new homes, and this percentage saw a decline as new home closings this year made up 3 of the 118 total closings. Following a year-over-year decline in December, closings of new and existing homes also slid year-over-year in January.
Pricing and Mortgage Trends
The average new home value went from $316,128 last year to $354,099. This was on the heels of a 8.2% drop in December from a year earlier.
Average mortgage size on new homes rose from $271,345 to $292,391. Average mortgage size on new homes went from $254,529 in December 2014 to $240,262 in December 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in January 2016.
The average unit size of newly sold homes rose from 2,278 square feet a year earlier to 2,327 square feet.
Foreclosures and real estate owned (REO) closings rose in January from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 14.8% of existing home closings, up from 9.1% a year earlier. The percentage of existing home closings involving foreclosures rose to 9.6% in January from 5.8% a year earlier while REO closings as a percentage of existing home closings jumped to 5.2% from 3.2%.