In the Midland, TX market in May, closings of new homes sank year-over-year, and the decline was by a larger percentage than the April 2016. New home closings moved from 34 a year earlier to 1 after the figure moved from 40 in April 2015 to 2 in April 2016.
A total of 92 new homes were sold during the 12 months that ended in May, down from 125 for the year that ended in April.
New home closings were 11.8% of total closings a year earlier, and this percentage saw a fall as new home closings this year made up 1 of the 194 total closings. For new and existing homes, closings sank in May after also declining in April year-over-year.
Pricing and Mortgage Trends
The average per-unit price of new homes was $203,298, compared with $305,065 last year. This was on the heels of a 8.3% decline in April from a year earlier.
Average mortgage size on newly sold homes saw a decline year-over-year from $263,276 to $201,286. Average mortgage size on new homes went from $265,134 in April 2015 to $243,194 in April 2016.
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.
The average unit size of newly sold homes fell from 2,431 square feet a year earlier to 1,566 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, represented 7.3% of existing home closings, higher than 5.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 5.2% in May from 3.2% a year earlier and REO closings moved from 2.8% of existing home closings in May 2015 to 2.1% in May 2016.