In the Killeen, TX market in August, closings of new homes fell year-over-year, and the percentage drop was more severe than July 2015, indicating the market may be worsening. New home closings saw a 22.6% fall from a year earlier to 127. This came on the heels of a 7.6% drop year-over-year in July.
A total of 1,485 new homes were sold during the 12 months that ended in August, down from 1,522 for the year that ended in July.
New home closings represented 17.2% of overall housing closings. This is down from the a year earlier when new home closings represented 20.7% of total closings. After rising year-over-year in July, closings of new and existing homes dropped year-over-year in August.
Pricing and Mortgage Trends
In August, the average value of new homes saw a 11.0% lift year-over-year as it grew to $211,307 per unit. This bump follows a move from $204,764 per unit to $205,865 from July 2014 to July 2015.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. In August 2015, there was a 10.4% surge in the average mortgage size, reaching $203,264. In July 2015, average mortgage size climbed 1.1% from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 98.8% of new home closings to 99.2% of closings while attached units have gone from 1.2% of closings to 0.8% of closings.
There was a 2.2% boost year-over-year in the average unit size of newly sold homes to 2,249 square feet in August 2015. In July, the average size of new homes sold went from 2,288 square feet a year earlier to 2,196 square feet.
Foreclosures and real estate owned (REO) closings declined in August from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings accounted for 31.3% of existing home closings, down from 33.2% a year earlier. The percentage of existing home closings involving foreclosures went from 18.5% in August 2014 to 18.2% in August 2015 and REO closings as a percentage of existing home closings fell to 13.1% from 14.7% a year earlier.