In November, there was a decline year-over-year in new home closings in the Lubbock, TX market, and the decline was by a larger percentage than the October 2015. New home closings moved from 40 a year earlier to 15 after the figure moved from 30 in October 2014 to 14 in October 2015.
A total of 340 new homes were sold during the 12 months that ended in November, down from 365 for the year that ended in October.
Out of all housing closings, new home closings represented 3.4%. This is down from the a year earlier when new home closings accounted for 9.1% of total closings. After rising in October from a year earlier, closings of new and existing homes stayed steady in November.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year 37.7% in November to $317,038 per unit. This lift is better than the 15.6% gain in October year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In November 2015, the average mortgage size on newly sold homes saw a 32.9% rise from a year earlier. Average mortgage size on new homes went from $219,503 in October 2014 to $244,312 in October 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. The share of new home closings belonging to single-family homes rose from 90.0% in November 2014 to all of closings in November 2015. Conversely, the share of new home closings belonging to attached units sank to no part of closings from 10.0% of closings.
There was a 50.5% boost year-over-year in the average unit size of newly sold homes to 3,166 square feet in November 2015. An increase in both the average size and price of newly sold homes was also seen in October 2015 when the average size gained 44.0% to 3,215 square feet. The average size of newly sold homes moved from 2,232 square feet in October 2014 to 3,215 square feet in October 2015.
Foreclosures and real estate owned (REO) closings rose in November from a year earlier and did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 13.3% of existing home closings, above 12.8% a year earlier. The percentage of existing home closings involving foreclosures rose to 6.1% in November from 5.0% a year earlier and REO closings moved from 7.8% of existing home closings in November 2014 to 7.3% in November 2015.