In the Las Cruces, NM market, closings of new homes fell year-over-year in June, but the decline was less than the year-over-year decline in May. New home closings moved from 42 a year earlier to 15 after the figure moved from 40 in May 2015 to 13 in May 2016.
A total of 366 new homes were sold during the 12 months that ended in June, down from 393 for the year that ended in May.
New home closings made up 5.0% of overall housing closings. This is down from the 13.3% of closings a year earlier. After rising year-over-year in May, closings of new and existing homes dropped year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes sank 2.0% year-over-year in June to $216,315 per unit. This decline compares to a 7.7% boost in May year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In June 2016, the average mortgage size on newly sold homes saw a 3.0% decline from a year earlier. Average mortgage size on new homes went from $184,246 in May 2015 to $200,357 in May 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 June 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
There was a 5.7% fall year-over-year in the average unit size of newly sold homes to 1,839 square feet in June 2016. The average size of newly sold homes moved from 1,907 square feet in May 2015 to 1,883 square feet in May 2016.
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. Out of all existing home closings, foreclosures combined with REO closings accounted for 15.0% of closings, below 18.2% a year earlier. The percentage of existing home closings involving foreclosures went from 5.1% in June 2015 to 5.9% in June 2016 and REO closings as a percentage of existing home closings dropped to 9.1% from 13.1% a year earlier.