In the Brownsville, TX market, closings of new homes sank year-over-year in March, declining after staying relatively stable in February from the year earlier. Closings stood at 15 in March after being 21 a year earlier and remaining unchanged at 13 in February from a year earlier.
A total of 220 new homes were sold during the 12 months that ended in March, down from 226 for the year that ended in February.
Compared to a year earlier, new home closings as a percentage of total closings stayed the same at 3.8%. For new and existing homes, closings fell in March after also declining in February year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price increased 17.1% year-over-year in March to $179,330 per unit. This lift is better than the 1.7% gain in February year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size rose to $164,241 in March, marking a 19.0% bump compared with a year earlier. Average mortgage size on new homes went from $121,136 in February 2015 to $123,591 in February 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in March 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes grew 4.4% year-over-year to 1,601 square feet in March 2016. The average size of newly sold homes moved from 1,803 square feet in February 2015 to 734 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 16.5% of existing home closings, below 22.0% a year earlier. The percentage of existing home closings involving foreclosures sank to 7.9% in March from 11.9% a year earlier while REO closings as a percentage of existing home closings dropped to 8.7% from 10.1% a year earlier.