In August, there was a drop year-over-year in new home closings in the Brownsville, TX market, and there were signs the market may be weakening with a percentage fall steeper than July 2015. There was a 32.4% fall in new home closings from a year earlier. This came on the heels of a 14.3% drop year-over-year in July.
A total of 234 new homes were sold during the 12 months that ended in August, down from 245 for the year that ended in July.
Out of all housing closings, new home closings represented 4.3%. This is down from the 7.4% of closings a year earlier. After dropping in July from a year earlier, closings of new and existing homes gained year-over-year in August.
Pricing and Mortgage Trends
The average price of new homes dropped by 9.6% year-over-year to $130,698 per unit in August. This decline is larger than the 5.0% fall in July from a year earlier.
The average mortgage size on newly sold homes slid year-over-year in contrast to the average price of new homes. In August 2015, average mortgage size on new homes sold was $127,415, down 4.2% from a year earlier. In July 2015, average mortgage size on newly sold homes saw a 6.6% decline from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. Attached unit closings jumped from 2.9% of all closings in August 2014 to 4.3% of closings in August 2015. Conversely, the share belonging to single-family homes declined to 95.7% of closings from 97.1% of closings.
For all new homes sold, the average unit size slid 19.3% year-over-year to 1,367 square feet in August 2015. In July, the average size of new homes sold went from 1,713 square feet a year earlier to 2,069 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 19.8% of existing home closings, below 20.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 10.1% in August from 12.9% a year earlier while REO closings as a percentage of existing home closings grew to 9.7% from 8.0%.