New home closings in the McAllen, TX market declined year-over-year in April, but the decline in percentage terms was an improvement from March 2016, suggesting that the market may be stabilizing. New home closings saw a 23.4% drop from a year earlier to 36. This was after the housing market saw a 25.0% drop year-over-year in March.
A total of 551 new homes were sold during the 12 months that ended in April, down from 562 for the year that ended in March.
Out of all housing closings, new home closings made up 5.4%. This is a decline 7.4% of closings a year earlier. After dropping in March from a year earlier, closings of new and existing homes increased year-over-year in April.
Pricing and Mortgage Trends
The average price of newly sold homes grew year-over-year 2.8% in April to $188,794 per unit. This lift is smaller than the 2.8% boost in March year-over-year.
Average mortgage size on new homes went from $174,278 in April 2015 to $175,335 in April 2016. In March 2016, average mortgage size climbed 2.0% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings jumped from 97.9% of new closings in April 2015 to all of closings in April 2016. Conversely, the share of new home closings belonging to attached units dropped to no part of closings from 2.1% of closings.
The average unit size of newly sold homes sank 28.5% year-over-year to 1,397 square feet in April 2016. The average size of newly sold homes moved from 1,865 square feet in March 2015 to 2,186 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 23.3% of existing home closings, below 35.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 12.4% in April from 15.4% a year earlier while REO closings as a percentage of existing home closings slid to 10.9% from 20.2% a year earlier.