New home closings slid year-over-year in September in the College Station, TX market, but compared with August 2015, the percentage fall was less steep, hinting the market may be strengthening. New home closings saw a decline of 33.3% from the year earlier to 18. This followed a 40.9% decline year-over-year in August.
A total of 450 new homes were sold during the 12 months that ended in September, down from 459 for the year that ended in August.
New home closings represented 5.9% of overall housing closings. This is a drop 9.1% of closings a year earlier. Following a year-over-year increase in August, closings of new and existing homes also increased year-over-year in September.
Pricing and Mortgage Trends
In September, the average price of newly sold homes slid year-over-year to $275,900 per unit, marking a 10.2% drop from the year-earlier figure. This drop follows a move from $253,466 per unit to $254,343 from August 2014 to August 2015.
Average mortgage size on new homes sank year-over-year in contrast to new home prices. Average mortgage size fell 3.2% to $247,904 in September from a year earlier. It went from $212,398 to $211,173 from August 2014 to August 2015.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have dipped. Attached unit closings gained from 3.7% of all closings in September 2014 to 5.6% of closings in September 2015. Meanwhile, single-family home closings as a percentage of all new home closings fell to 94.4% of closings from 96.3% of closings.
For all new homes sold, the average unit size gained 11.8% year-over-year to 2,614 square feet in September 2015. The average size of newly sold homes moved from 2,126 square feet in August 2014 to 2,763 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 5.9% of existing home closings, down from 10.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 3.1% in September from 4.8% a year earlier while REO closings as a percentage of existing home closings dropped to 2.8% from 5.5% a year earlier.