In the Lubbock, TX market in September, new home closings sank year-over-year, but with a percentage drop not as steep as August 2015, there are signals that the market may be evening out. New home closings saw a drop of 48.5% from the year earlier to 17. This was after the housing market saw a 52.3% drop year-over-year in August.
A total of 381 new homes were sold during the 12 months that ended in September, down from 397 for the year that ended in August.
As a percentage of overall housing closings, new home closings represented 3.3%. This is a fall 6.7% of closings a year earlier. Closings of new and existing homes rose year-over-year in September following a decline in August year-over-year.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year in September to $342,000 per unit, a rise of 37.3%. This lift is better than the 12.5% gain in August year-over-year.
The average mortgage size on newly sold homes increased year-over-year along with the average price of new homes. In September 2015, there was a 46.0% gain in the average mortgage size, reaching $308,697. Average mortgage size climbed 13.2% in August 2015 from a year earlier.
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. Single-family home closings grew from 97.0% of new closings in September 2014 to all of closings in September 2015. Conversely, the share of new home closings belonging to attached units declined to no part of closings from 3.0% of closings.
For all new homes sold, the average unit size jumped 39.6% year-over-year to 3,097 square feet in September 2015. The average size of newly sold homes moved from 2,198 square feet in August 2014 to 2,731 square feet in August 2015. An increase was also seen in August 2015 when the average size of new homes sold gained 24.2% to 2,731 square feet.
Foreclosures and real estate owned (REO) closings increased in September from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 13.0% of existing home closings, above 11.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 8.1% in September from 5.3% a year earlier while REO closings as a percentage of existing home closings dropped to 4.9% from 5.9% a year earlier.