Closings of new homes in the Killeen, TX market increased year-over-year in June, snapping back from a drop in May 2016. There was a 11.8% climb in new home closings from a year earlier. This came after a 22.6% fall year-over-year in May.

A total of 1,519 new homes were sold during the 12 months that ended in June, up from 1,502 for the year that ended in May.

As a percentage of overall housing closings, new home closings made up 16.6%. This is down from the a year earlier when new home closings accounted for 17.9% of total closings. Closings of new and existing homes grew year-over-year in June following a decline in May year-over-year.

Pricing and Mortgage Trends

Average price of newly sold homes had a 4.5% gain year-over-year to $213,406 per unit in June. This surge compares to a 4.2% drop in May from a year earlier.

For newly sold homes, the average mortgage size gained year-over-year along with new home prices. In June 2016, average mortgage size rose 2.0% from a year earlier to $201,526. In May 2016, average mortgage size fell 10.0% from a year earlier.

Other Market Trends

Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from 98.6% in June 2015 to all of closings in June 2016. Conversely, the share of new home closings belonging to attached units sank to no part of closings from 1.4% of closings.

For all new homes sold, the average unit size declined 3.2% year-over-year to 2,140 square feet in June 2016. In May, the average size of new homes sold went from 2,276 square feet a year earlier to 2,440 square feet.

Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 18.0% of closings, below 28.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.4% in June from 14.7% a year earlier while REO closings as a percentage of existing home closings slid to 10.5% from 13.6% a year earlier.

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