In the McAllen, TX market, new home closings jumped year-over-year in May, and the market seemed to be suggesting bolstering with a percentage lift stronger than April 2016. Closings gained 11.6% from a year earlier to 48. This followed a 2.1% rise year-over-year in April.
A total of 572 new homes were sold during the 12 months that ended in May, up from 567 for the year that ended in April.
Of the total number of closings, new home closings made up 7.8%. A year earlier, new home closings accounted for 7.5% of total closings. For new and existing homes, closings rose year-over-year in May after also increasing in April year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes grew year-over-year to $177,751 in May, up 7.3% from last year. This boost is an improvement over the 3.2% hike in April year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In May 2016, average mortgage size jumped 7.3% from a year earlier to $163,742. Average mortgage size rose 1.5% in April 2016 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 May 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
There was a 21.5% drop year-over-year in the average unit size of newly sold homes to 1,437 square feet in May 2016. In April, the average size of new homes sold went from 1,955 square feet a year earlier to 1,957 square feet.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 23.6% of existing home closings, higher than 23.4% a year earlier. The percentage of existing home closings involving foreclosures rose to 13.5% in May from 10.9% a year earlier while REO closings as a percentage of existing home closings sank to 10.2% from 12.5% a year earlier.