In the San Antonio, TX market, new home closings slid year-over-year in May, but the percentage fall was not as steep as April 2016, suggesting that the market may be evening out. New home closings saw a drop of 1.4% from the year earlier to 752. This came after a 7.6% drop year-over-year in April.
A total of 8,700 new homes were sold during the 12 months that ended in May, down from 8,711 for the year that ended in April.
Of the total number of closings, new home closings made up 17.7%. A year ago, new home closings accounted for 17.5%. Closings of new and existing homes dropped year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes gained year-over-year 1.7% in May to $282,037 per unit. This hike is smaller than the 5.7% gain in April year-over-year.
There was a hike year-over-year in the average mortgage size on new homes along with new home prices. In May 2016, the average mortgage size was $262,361, up 3.8% from a year earlier. In April 2016, average mortgage size on newly sold homes saw a 6.6% hike year-over-year 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. The share of new home closings belonging to single-family homes increased from 98.3% in May 2015 to 99.9% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings declined to 0.1% of closings from 1.7% of closings.
The average unit size of newly sold homes jumped 7.4% year-over-year to 2,874 square feet in May 2016. An increase was also seen in April 2016 when the average size of new homes sold grew 10.0% to 2,808 square feet. In April, the average size of new homes sold went from 2,553 square feet a year earlier to 2,808 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 13.8% of existing home closings, below 15.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 5.1% in May from 7.1% a year earlier and REO closings moved from 8.9% of existing home closings in May 2015 to 8.7% in May 2016.