In the Houston, TX market, closings of new homes dropped year-over-year in November, but the percentage drop, which was less steep than in October 2015, seemed to be suggesting market improvement. New home closings saw a 16.6% fall from a year earlier to 1,822. This came after a 17.3% drop year-over-year in October.
A total of 25,009 new homes were sold during the 12 months that ended in November, down from 25,371 for the year that ended in October.
New home closings accounted for 21.3% of overall housing closings. A year ago, 22.3% of total closings were new home closings. Closings of new and existing homes slid year-over-year in November after also falling in October year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $312,327 per unit in November, up 4.8%from a year earlier. This bump is smaller than the 5.3% surge in October year-over-year.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. In November 2015, the average mortgage size was $269,874, a 5.8% surge from a year earlier. In October 2015, average mortgage size on newly sold homes saw a 6.5% gain 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 November 2015. Single-family home closings have accounted for 97.5% of new home closings while attached unit closings have represented 2.5% of closings.
The average unit size of newly sold homes gained 7.9% year-over-year to 3,044 square feet in November 2015. In October, the average size of new homes sold went from 2,823 square feet a year earlier to 3,125 square feet. An increase in both the average size and price of newly sold homes was also seen in October 2015 when the average size grew 10.7% to 3,125 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 14.8% of existing home closings, below 19.3% a year earlier. The percentage of existing home closings involving foreclosures dropped to 7.1% in November from 8.3% a year earlier while REO closings as a percentage of existing home closings fell to 7.7% from 11.0% a year earlier.