In the McAllen, TX market, new home closings grew year-over-year in December, moving upward off a decline in November 2015. New home closings saw a hike of 12.0% from the year earlier to 56. This was after the housing market saw a 19.3% fall year-over-year in November.
A total of 602 new homes were sold during the 12 months that ended in December, up from 596 for the year that ended in November.
New home closings represented 9.0% of overall housing closings. A year ago, new home closings made up 8.0%. After declining in November from a year earlier, closings of new and existing homes remained level in December.
Pricing and Mortgage Trends
In December, the average price of newly sold homes rose 18.5% year-over-year to $189,974 per unit. This boost is better than the 13.4% lift in November year-over-year.
There was a gain year-over-year in the average mortgage size on new homes along with new home prices. In December 2015, the average mortgage size was $174,457, up 18.1% from a year earlier. In November 2015, average mortgage size climbed 17.3% from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in December 2015. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
The average unit size of newly sold homes remained steady year-over-year at 1,832 square feet in December 2015. In November, the average size of new homes sold went from 1,808 square feet a year earlier to 1,937 square feet.
Foreclosures and real estate owned (REO) closings fell in December from a year earlier, but remained a drag on the market. Foreclosures and REO closings, taken together, accounted for 27.0% of existing closings, lower than 32.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 13.8% in December from 16.3% a year earlier while REO closings as a percentage of existing home closings dropped to 13.2% from 15.7% a year earlier.