In the Waco, TX market in February, new home closings dropped year-over-year, but the decline was less than the year-over-year decline in January. New home closings moved from 28 a year earlier to 21 after the figure moved from 17 in January 2015 to 10 in January 2016.
A total of 295 new homes were sold during the 12 months that ended in February, down from 302 for the year that ended in January.
New home closings accounted for 5.7% of overall housing closings. This is down from the a year earlier when new home closings accounted for 7.7% of total closings. After a fall in January year-over-year, new and existing home closings stayed level in February.
Pricing and Mortgage Trends
In February, the average price for new home closings was $186,091, a 9.7% decline from last year. This fall compares to a 56.5% boost in January year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In February 2016, average mortgage size fell 11.1% from a year earlier to $161,611. Average mortgage size on new homes went from $141,130 in January 2015 to $199,723 in January 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 February 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
There was a 15.0% decline year-over-year in the average unit size of newly sold homes to 1,802 square feet in February 2016. The average size of newly sold homes moved from 1,917 square feet in January 2015 to 880 square feet in January 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in February, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 15.9% of existing home closings, below 23.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.5% in February from 10.7% a year earlier while REO closings as a percentage of existing home closings dropped to 10.4% from 12.4% a year earlier.