In the Corpus Christi, TX market, closings of new homes dropped year-over-year in September, and there were signs of worsening market conditions as the percentage fall was steeper than August 2015. There was a 65.2% fall in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 52.6% decline year-over-year in August.
A total of 605 new homes were sold during the 12 months that ended in September, down from 648 for the year that ended in August.
As a percentage of overall housing closings, new home closings represented 4.5%. This is down from the 8.5% of closings a year earlier. Closings of new and existing homes sank year-over-year in September after also falling in August year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes grew year-over-year to $267,889 in September, up 7.1% from last year. This lift is smaller than the 15.0% rise in August year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. It rose to $234,644 in September, a 5.7% lift. In August 2015, average mortgage size on newly sold homes saw a 13.0% lift 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 95.5% in September 2014 to all of closings in September 2015. At the same time, the share of new home closings belonging to attached units sank to no part of closings from 4.5% of closings.
The average unit size of newly sold homes dropped 6.1% year-over-year to 1,954 square feet in September 2015. In August, the average size of new homes sold went from 2,150 square feet a year earlier to 2,571 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 11.3% of existing closings, lower than 13.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.5% in September from 7.4% a year earlier and REO closings moved from 6.2% of existing home closings in September 2014 to 5.7% in September 2015.