Closings of new homes dropped year-over-year in May in the Laredo, TX market, and the decline was by a larger percentage than the April 2016. New home closings moved from 27 a year earlier to 5 after the figure moved from 37 in April 2015 to 10 in April 2016.
A total of 101 new homes were sold during the 12 months that ended in May, down from 123 for the year that ended in April.
New home closings represented 5 out of the 202 total closings, which is a smaller percentage than the 27 of 250 total closings a year earlier. Following a year-over-year decline in April, closings of new and existing homes also sank year-over-year in May.
Pricing and Mortgage Trends
The average new home price was $230,870, up from $171,193 a year earlier. This came after a 33.0% drop in April from a year earlier.
The average mortgage size on new homes was $210,147, up from $162,954. Average mortgage size on new homes went from $188,207 in April 2015 to $134,160 in April 2016.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
The average unit size of newly sold homes fell from 1,760 square feet a year earlier to 1,438 square feet.
Foreclosures and real estate owned (REO) closings rose in May from a year earlier and did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 21.8% of existing home closings, above 21.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.1% in May from 7.6% a year earlier while REO closings as a percentage of existing home closings jumped to 16.8% from 13.9%.