The Laredo, TX market saw an increase in closings of new homes in June year-over-year, rebounding from a year-over-year decline in May 2015. New home closings moved from 18 a year earlier to 19 after the figure moved from 26 in May 2014 to 14 in May 2015.
A total of 236 new homes were sold during the 12 months that ended in June, up from 235 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 7.8% of overall housing closings. As a part of the whole, new home closings were 6.9% a year earlier. For new and existing homes, closings slid in June after also declining in May year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 14.5% fall year-over-year to $152,974 per unit in June. This decline is larger than the 11.5% fall in May from a year earlier.
The average mortgage size on newly sold homes declined year-over-year in contrast to the average price of new homes. In June 2015, there was a 14.9% drop in the average mortgage size on new homes to $147,218. Average mortgage size on new homes went from $145,233 in May 2014 to $132,344 in May 2015.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes jumped from 94.4% in June 2014 to all of closings in June 2015. At the same time, the share of new home closings belonging to attached units declined to no part of closings from 5.6% of closings.
There was a 47.8% fall year-over-year in the average unit size of newly sold homes to 1,089 square feet in June 2015. The average size of newly sold homes moved from 1,604 square feet in May 2014 to 1,355 square feet in May 2015. A drop was also seen in May 2015 when the average size of new homes sold dropped 15.5% to 1,355 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 22.3% of existing home closings, below 29.6% a year earlier. The percentage of existing home closings involving foreclosures rose to 12.9% in June from 11.9% a year earlier while REO closings as a percentage of existing home closings declined to 9.4% from 17.7% a year earlier.