In the Midland, TX market in September, new home closings slid year-over-year, but the decline was less than the year-over-year decline in August. New home closings moved from 57 a year earlier to 15 after the figure moved from 60 in August 2014 to 10 in August 2015.
A total of 495 new homes were sold during the 12 months that ended in September, down from 537 for the year that ended in August.
As a percentage of overall housing closings, new home closings accounted for 5.8%. This is down from the a year earlier when new home closings made up 16.9% of total closings. For new and existing homes, closings declined in September after also declining in August year-over-year.
Pricing and Mortgage Trends
In September, the average price of newly sold homes rose year-over-year to $346,341 per unit, a 12.4% bump. This gain follows a move from $318,534 per unit in August 2014 to $316,859 in August 2015.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size rose to $290,824 in September, marking a 10.1% gain compared with a year earlier. Average mortgage size on new homes went from $270,087 in August 2014 to $335,215 in August 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 September 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size increased 15.2% year-over-year to 2,562 square feet in September 2015. The average size of newly sold homes moved from 2,282 square feet in August 2014 to 1,827 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 6.9% of existing home closings, below 8.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.1% in September from 5.3% a year earlier and REO closings moved from 3.2% of existing home closings in September 2014 to 2.9% in September 2015.