In May, there was a fall year-over-year in new home closings in the Killeen, TX market, and there were signs the market may be worsening with a percentage decline steeper than that of April 2016. New home closings saw a 22.2% decline from a year earlier to 98. This was after the housing market saw a 1.4% drop year-over-year in April.
A total of 1,524 new homes were sold during the 12 months that ended in May, down from 1,552 for the year that ended in April.
New home closings accounted for 15.3% of overall housing closings. This is a fall 18.2% of closings a year earlier. Following a year-over-year decline in April, closings of new and existing homes also sank year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes dropped by 3.8% year-over-year to $206,300 per unit in May. This drop compares to a 5.2% lift in April year-over-year.
The average mortgage size on newly sold homes saw a drop year-over-year in contrast to new home prices. It dropped 9.2% in May from a year earlier, reaching $193,647. In April 2016, average mortgage size climbed 6.6% from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 99.2% of new home closings to all of closings while attached units have gone from 0.8% of closings to no part of closings.
The average unit size of newly sold homes increased 7.2% year-over-year to 2,440 square feet in May 2016. In April, the average size of new homes sold went from 2,183 square feet a year earlier to 2,469 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 19.5% of closings, below 25.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.6% in May from 12.0% a year earlier while REO closings as a percentage of existing home closings slid to 12.0% from 13.4% a year earlier.