The Laredo, TX market saw a drop in new home closings year-over-year in February, but the decline was less than the year-over-year decline in January. New home closings moved from 42 a year earlier to 9 after the figure moved from 28 in January 2015 to 3 in January 2016.

A total of 187 new homes were sold during the 12 months that ended in February, down from 220 for the year that ended in January.

New home closings were 9 out of the 198 total closings, down on a percentage basis from 42 of 224 a year earlier. For new and existing homes, closings fell in February after also declining in January year-over-year.

Pricing and Mortgage Trends

The average new home value went from $180,332 last year to $186,669. This was on the heels of a 31.9% decline in January from a year earlier.

Average mortgage size on new homes went from $174,843 a year earlier to $186,190. Average mortgage size on new homes went from $206,058 in January 2015 to $146,296 in January 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 1,802 square feet a year earlier to 1,551 square feet.

Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in February, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 22.2% of existing home closings, down from 33.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.1% in February from 17.6% a year earlier while REO closings as a percentage of existing home closings slid to 12.2% from 15.4% a year earlier.

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