In the Midland, TX market in June, closings of new homes slid year-over-year, but the decline was less than the year-over-year decline in May. New home closings moved from 22 a year earlier to 4 after the figure moved from 34 in May 2015 to 4 in May 2016.
A total of 77 new homes were sold during the 12 months that ended in June, down from 95 for the year that ended in May.
New home closings were 7.0% of total closings a year earlier, and this percentage saw a decline as new home closings this year made up 4 of the 308 total closings. Closings of new and existing homes dropped year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
The average new home price was $373,353, up from $350,797 a year earlier. This was on the heels of a 9.3% drop in May from a year earlier.
The average mortgage size on new homes was $311,973, up from $291,411. Average mortgage size on new homes went from $263,276 in May 2015 to $253,627 in May 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 June 2016.
The average unit size of newly sold homes rose from 2,537 square feet a year earlier to 2,632 square feet.
Foreclosures and real estate owned (REO) closings increased in June from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 9.5% of existing home closings, up from 6.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 4.6% in June from 3.4% a year earlier while REO closings as a percentage of existing home closings climbed to 4.9% from 3.1%.